Groupon shares rise 5% on purchase of FeeFighters

Daily-deals site adds another service targeting small businesses

Shares of Groupon (NASDAQ: GRPN) jumped more than 5% on Tuesday after the daily-deals website bought Foo Fighters, the band started by former Nirvana drummer Dave Grohl -- oh wait, Groupon actually bought FeeFighters, a comparison shopping website for credit card processing aimed at small businesses. Terms of the deal were undisclosed. Groupon's stock finished Tuesday up 90 cents, or 5.1%, to 18.28 after reaching as high as 18.50. Despite the big gain, Groupon shares are down 11.4% so far this year. The Chicago-based company went public last November 4 after a contentious IPO quiet period, climbing as high as 31.14 before ending its first day of trading at 26.11. Groupon's underwriters had priced shares at $20. FeeFighters, also based in Chicago, was founded three years ago by Sean Harper and Joshua Krall. The company features a dog on its page introducing the FeeFighters team. Is that so wrong? The acquisition is another move for Groupon to diversify its revenue base beyond collecting fees from local merchants offering consumer discount deals through the website. Last week the company unveiled a free beta version of Groupon Scheduler, an online booking and staffing management tool for small businesses. Dave Grohl could not be reached for comment, though it's not likely he'd have much to add.

Chris Nerney writes ITworld's Tech Business Today blog. Follow Chris on Twitter at @ChrisNerney. For the latest IT news, analysis and how-tos, follow ITworld on Twitter, Facebook, and Google+.

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