Gene Munster: Divesting Groupon Unlocks $1 Billion In Value

Piper Jaffray analyst Gene Munster said that if Groupon Inc (NASDAQ: GRPN) divests businesses, it may raise $730 million and add more than $1 billion to its market capitalization.

Munster argued that the "stealth assets" are "underappreciated by investors." The largest such divestiture, a $500 million sales of its majority stake in South Korean e-commerce company Ticket Monster.

Munster sees private equity as the most likely market for Groupon's divestitures. In fact, it has been reported that KKR is the likely buyer of Ticket Monster. Groupon has publicly announced that it is considering strategic alternatives for Ticket Monster, but has not announced publicly any other plans.

According to Re/Code report, Groupon is also looking to sell Breadcrumb, a checkout software company for bars and restaurants. Munster estimated that Breadcrumb will bring in $100 million, as might Ideel, an online flash sale site. Groupon purchased Ideel for $43 million last year.

Groupon would divest these businesses to focus more on its core ecommerce offerings, according to Munster. However, the company is still looking to find its way. Groupon is testing Groupon Stores, as well as movie downloads.

The stock has fallen more than 12.5 percent this year to a recent price of $7.21.