Groupon Soars 11% on Hedge Fund Investment

Groupon

is up more than 11 percent this morning after Tiger Global Management, LLC announced that it had acquired a 9.9 percent stake in the company.

According to

, the firm purchased 65 million shares in Groupon. At yesterday's close of $3.11, that stake was valued at $201.8 million. Tiger Global's investment comes at a difficult time for Groupon. As recent as 2011, many investors thought that daily deals were the next big thing. Groupon appeared to be leading the charge, with many sure to follow. That has not been the case, however. LivingSocial and other daily deals sites have begun to fizzle. Groupon remains a strong company with millions of members, but with

complaints from critics and

, some clients may be unwilling to return. Groupon's decline in sales represents an even greater challenge. Company shares

after Groupon reported its third-quarter results. Over the last three months alone, shares of the daily deals giant have declined by more than 30 percent. Since November 2011, Groupon has lost more than 88 percent of its value. But in the last five days, the company began to turn itself around, rising more than 16 percent. In September, Groupon announced that it had

of Savored, a reservations site for restaurants. The company also earned a little praise from Morgan Stanley after it launched a new payment solution for its merchants. Groupon took a cue from Apple

and other large corporations and decided to open its own

in Hong Kong. The company gave away one iPhone 5 to the first 10 customers that successfully answered a series of mystery questions. It is not yet known if Groupon will bring its retail outlet to America. On November 14 Groupon

Kal Raman -- a 20-year veteran in technology and retail businesses -- as its new Chief Operating Officer. "In a very short time, Kal has had a significant impact on increasing the number and quality of local businesses using the Groupon platform to the benefit of Groupon customers around the world," Groupon CEO Andrew Mason said in a

. "We are already seeing progress in Europe and Kal will be instrumental in leading our company as we deploy tools and technologies that will help us continue to grow both Groupon and the categories in which we operate." Groupon also announced its first-ever

and

wish books with

.