Reports: Google to Buy Groupon
According to several reports, Google is either close to
a deal or has already agreed to buy Groupon with terms said to be anywhere
from $2.5 billion to $6 billion.
Rumors have been swirling
around the two companies in recent weeks even though the group sales site has
steadfastly maintained a desire to remain independent in the past.
to a report by Vator.tv, Groupon generates $50 million a month
in revenues and fundraising efforts have brought its valuation to roughly $1
billion. The company has 20 million subscribers in 29 countries around the
The site has prospered by offering consumers discounts at between 50 and
90 percent off at local businesses. As a DealBook article pointed out,
it has also attracted national retailers such as The Gap. A Groupon deal with
the casual apparel chain resulted in 440,000 discount offers being sold for
Separately, a recent report by VentureBeat has Amazon.com
looking at a possible investment of upwards of $100 million in LivingSocial,
a competitor to Groupon
Discussion Questions: What do you think of a Google acquisition of Groupon?
What will this mean for the competitive situation surrounding group buying services?
- Google buys Groupon for $2.5 billion? – Vator.tv
- Groupon, Google mum on latest deal report – Crain’s Chicago Business
- Deal of the day? LivingSocial could be raising $100M from Amazon.com – VentureBeat
- Google Is Said to Be Poised to Buy Groupon – DealBook/The New York Times