Groupon rescued by Comcast

Michael Angelakis, former Comcast Vice Chairman and Chief Financial Officer, currently operating a $4-billion Atairos Management venture fund has made a $250 million investment into online deals site Groupon. Groupon will use the money for general corporate purposes, including repurchasing its stock. As part of the deal, both Groupon and Comcast will work together to "identify and implement potential strategic partnership opportunities."

Groupon had been going through a rough patch lately as it was attempting to transform itself into an online marketplace. The investment, coupled with the potential of the Comcast relationship, helped drive the stock up as much as 16 percent on Monday after the deal was announced. The stock closed at $4.29 per share on April 4, up 9%.

Briefing about the investment in a statement, Groupon CEO Rich Williams said, "Our partnership with Atairos will help accelerate our transformation while better positioning us to execute our strategy and mission to build the daily habit in local commerce which we continued to make progress on in the first quarter. I am extremely pleased that a respected, long-term oriented partner like Atairos shares our view about the vast opportunity ahead for Groupon."

Angelakis will be joining Groupon's board of directors as per the new deal. Hailing the partnership Atairos head said, "We are excited to be partnering with Groupon, the undisputed global leader in hyperlocal commerce with nearly 50 million active customers. Since creating the market in 2008, Groupon has redefined local commerce by increasing consumer buying power and changing the way businesses attract customers using modern mobile technology."

The partnership brings together the nation's largest cable operator and an early Internet darling that's attempting to transform itself into a broader online marketplace. For Comcast, the investment could help drive growth as the pay-TV industry undergoes massive change driven by more video programming being offered through online services like Netflix.