NEW YORK (

TheStreet

) -- Local-oriented stocks made big gains Friday, as startups like

Groupon

,

Milo.com

and

LivingSocial

, which focus on finding neighborhood deals for consumers, were cast into the spotlight on recent M&A news.

Local.com

(LOCM)

, a business search engine and advertising network, rose 8.1% to close at $5.47, while small business marketing and advertising company

SuperMedia

(SPMD) - Get Report

spiked 20.2% to close at $6.79.

Even Yellow Pages publisher

Dex One

(DEXO)

, which has recently struggled with layoffs and cost-cutting, jumped a whopping 39.9% and closed at $6.70.

Takeover speculation may have contributed to the increase in stock price among these companies, said Jon Hickman, an analyst at MDB Capital Group.

Potential suitors looking to beef up their offerings in local include

Yahoo!

(YHOO)

,

AOL

(AOL)

and

IAC

(IACI)

, said Hickman.

Earlier this week, reports swirled that popular daily deals site Groupon

was in acquisition discussions with Google (GOOG) - Get Report

, while competitor

LivingSocial

announced a $175 million investment from

Amazon

(AMZN) - Get Report

.

On Thursday,

local shopping engine Milo.com was snapped up by eBay (EBAY) - Get Report

for around $75 million.

Local stocks outperformed the broader tech market Friday, which rallied in the afternoon. The

Nasdaq gained 12 points, or 0.5%, to 2,591

.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to

http://twitter.com/Ozoran

.

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