As such, "It is a
killer move for Google--despite the high price-given it has long tried to enter the local advertising space, with decidedly mixed results."
"Industry observers say Groupon's ability to
straddle the worlds of online retail and brick-and-mortar commerce makes it attractive to a range of companies" -- and Google in particular -- notes the Chicago Tribune.
"If Google buys Groupon for $5.3 billion ... it would
go down as one of the most spectacular venture investments since, well, probably Google," writes The Wall Street Journal.
No doubt, combined with its
pending acquisition of travel data leader ITA Software, a Groupon grab will send government regulators and antitrust lawyers into a tizzy.
Antitrust concerns aside, Search Engine Land's
Greg Sterling says Google would be crazy -- with a "capital C" - to drop $5 billion on Groupon.
"Google is sitting on more than $30 billion in cash so maybe $5 billion isn't so much in that context," writes Sterling. Yet, despite a strong revenue stream and immediate control
of the local deal space, he suggests: "Just as we now see 'check-in fatigue' with Foursquare et al, there is what I will call 'deal fatigue' emerging."
On the contrary, "It would be
worth every overpriced penny," insists Mashable. "Groupon has an asset that Google covets so highly that it's willing to pay
billions: local advertisers."
As TechCrunch reasons, what seems clear is that "buying Groupon would be a very risky $5 billion bet for Google in an unproven area outside its
sweet spot of search."
'this is a case of having more money than brains...and is absolutely stupid...this is going to cost Google more money that the Youtube disaster.
The real treasure trove isn't the local advertiser - it's the ability to close the loop between search and purchase. The ability to track from search through to a purchase at the cash register will give Google the ability to drive up the price they currently charge for search. Groupon is a multiplier across the entire business. It's not just another segment of the market for ad dollars.