This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Technology Acquisition Targets

Stocks in this article: DELL GRPN YHOO EBAY AMZN

Gilt Groupe

Recently appointed Gilt Groupe CEO, Michelle Peluso, is said to have the right credentials to take the company public. When asked about IPO prospects, Gilt execs say that they are on that track, but Peluso says she's not ready to commit to a timeframe. Yet the markets have rebounded and Gilt's core businesses became profitable in December, so why wait? Perhaps the company is open to alternative options.

Gilt's recent turn to profitability may make it a more attractive target to strategic acquirers. Corporations like Macy's (M), Louis Vuitton, or Amazon (AMZN) could create potential synergies. The e-commerce site not only brought in $600 million in revenue last year, but Gilt Groupe has also become a notable fashion brand. Nordstrom (JWN)acquired competitor Hautelook for $270 million in 2011.

Vice Chairman Susan Lyne didn't rule out an acquisition, when interviewed in 2011 while she was CEO. Lyne said that though "anything can happen," she talked up the merits of being a private company. At the end of the day, most companies would sell themselves for the right price.

It's possible that Groupon's (GRPN) struggles as a public company have left Gilt feeling spooked. Though Gilt focuses more on discount goods and Groupon focuses more on discount services, both companies have their hands in each others businesses, with Gilt purchasing Groupon competitor, BuyWithMe, in 2011. As we saw with Groupon, it's difficult to be a public company in an industry with minimal barriers to entry. Companies like Gilt benefit when they remain a step ahead of competition. Otherwise market saturation, drives profits down. It's hard to stay ahead of the game when your strategies are publicly revealed. Gilt would be wise to carefully evaluate investor appetite before pulling the IPO trigger.

Gilt has already raised money at a billion dollar valuation. The e-commerce site has $221 million in venture funding, dating back to 2007. If Gilt doesn't get a great offer, an IPO may be their only option for repaying their investors in a timely fashion.

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs