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Deal Or No Deal? Google Eying Groupon

It won't likely be a steal, but Google is reportedly in acquisition talks with local deal leader Groupon. Citing multiple unnamed sources, Boomtown writes: "The price being considered is certainly no discount -- well above the $2 billion to $3 billion that Yahoo offered Groupon in acquisition talks that took place earlier this year."

Noting that Google "has struggled to deliver social tools to users," Boomtown adds: "Owning the hot space around local purchasing and consumer information, combined with the social element, would be a tasty treat for Google."

Citing speculation that Google is also eying Twitter and Foursquare, Business Insider's Henry Blodget tells CEO Eric Schmidt to go for the hat trick!

"Google should buy all these leading companies--and more," Blodget insists. Why? Because the company has mountains of money gathering dust on the sidelines -- $30 billion to be exact; search is maturing; all three potential acquisitions could eventually compete directly with Google -- particularly in a rivals hands; and, last but certainly not least, "Google sucks at social."

"Buying Groupon would save Google the trouble of having to cobble together its own daily deals system and would also aid in its efforts to flesh out Google Places," writes Mashable.

Yet, adds Mashable, "That's without even discussing the merits and advantages from a local search and location-based advertising approach."



Another issue, as The Wall Street Journal notes, is that as Groupon "buzz builds, so do its raft of competitors." Indeed, rivals of varying sizes working on their own deal services include Facebook, Yahoo, Yelp, Gilt Groupe, and even Thrillist. Still, we imagine so much rival interest would make a Groupon deal even more likely for Google.

If you're Groupon, why not just go for the IPO?

Writes Mashable: "Perhaps -- and we're just speculating here -- Groupon's investors have the same feelings of uncertainty about the longevity of the daily deals phenomenon as the rest of us."

Read the whole story at All Things D et al »

2 comments about "Deal Or No Deal? Google Eying Groupon".
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  1. Mark Burrell from Tongal, November 19, 2010 at 7:03 p.m.

    IPO? Why open yourself up to that casino? With Googles reach and a price well above that offer, makes sense to me.

  2. Joan T from lfs, November 23, 2010 at 7:15 a.m.

    GroupOn's daily deals are also listed in one website together with other deal sites. Check out!

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