Alibaba has bought nearly 33 million shares of online daily deal service Groupon.
Groupon's stock opened higher, up as much as 35 percent in Tuesday mid-morning trading.
The purchase gives the Chinese e-commerce powerhouse about a 5.6 percent stake in Groupon. Alibaba disclosed the purchase in a regulatory filing on Friday.
The news comes shortly after Groupon reported a fourth-quarter adjusted profit and revenue that beat analysts' expectations.
Last month Alibaba reported better-than-expected third-quarter results as it benefits from a shift to mobile spending and a growth in users.
AP
