Groupon Inc. (NASDAQ:GRPN) is thinking of divesting some or its entire Breadcrumb business unit according to multiple sources. The unit makes checkout software for eateries and bars that runs on iPads. The possibility of sale has been discussed by Groupon’s executives, and the company even propositioned a competitor about it.
Breadcrumb was acquired by Groupon in 2012 to help Groupon merchants to manage business more efficiently and make the redeeming of Groupon vouchers easier. The software comes with a payment processing option integrated. Seth Harris, the founder of Breadcrumb, is still with Groupon and has announced his intent to raise money from venture capitalists and spin Breadcrumb away from Groupon Inc. (NASDAQ:GRPN) as a standalone. It is unclear whether he has approached any investor with the proposal or if Groupon is even amenable to such a proposition.
In related news, according to sources, a Groupon executive casually mentioned the idea of selling some or all of its business to competitor Square. The idea has not gotten off the ground and the two sides have not held any formal talks on a deal.
A Groupon declined to comment on specifics but said that the company is always on the lookout at assets to best position for growth and unlock values for shareholders.
Gropupon also has less sophisticated iPad checkouts that are geared towards small brick and mortar businesses. It is not clear what will happen to this business if Groupon sold off Breadcrumb.
Groupon has also been considering the sale of its Korean business, Ticket Monster, due to high competition in the area. Ticket Monster was bought by Groupon from LivingSocial in 2014 for $260 million.
Groupon Inc. (NASDAQ:GRPN) has been trying to convert its website into a shipping destination with a giant catalogue of deals and services. The company wants to convert the company into a shopping destination where customers come regularly rather than rely on one-off promotions to get customers.