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Groupon shares surge on Alibaba stake

Alibaba has bought a 5.6 percent stake in Chicago-based Groupon. | AP file photo

Alibaba has bought nearly 33 million shares of online daily deal service Groupon.

Chicago-based Groupon Inc.’s stock jumped more than 40 percent by midday Tuesday.

The purchase gives the Chinese e-commerce powerhouse about a 5.6 percent stake in Groupon. Alibaba disclosed the purchase in a regulatory filing on Friday.

The news comes shortly after Groupon reported a fourth-quarter adjusted profit and revenue that beat analysts’ expectations.

Last month Alibaba Group Holding Ltd. reported better-than-expected third-quarter results as it benefits from a shift to mobile spending and a growth in users.