Google buying Groupon for $2.5 billion?

Google, the world's largest search engine and collector of personal data, may have just acquired Groupon for 2.5 billion dollars. Groupon, for those who are not familiar with the company, is a deal-per-day website that is localized to individual markets. A deal is offered and if enough people sign up for the deal, then it becomes available to all. If not, the deal dies and no one is able to cash in on the savings.

If Google did buy Groupon, it would help them expand their advertising network. Google makes the vast portion of its earnings from its advertising and adding Groupon would allow them to access local markets more effectively. If Google did buy Groupon, it would add substantial area for growth for both companies.

It is currently estimated that Groupon is pulling in $50 million dollars a month, and with Google's resources, profits could explode with additional local markets being added, according to Vator.tv. Neither Google nor Groupon has commented on the purchase, but a well placed insider is saying that the deal is nearly done.   

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18 Comments

Wondering if they'll fold it into Google somehow or leave it as a separate company like they did with YouTube. To all Google haters: Gowalla, anyone?

Wow, is that $50 million figure is correct, at $2.5 billion Google could have this deal paid off in 4 years or less. Very smart business move. Makes you wonder just how far Google will go in our lifetimes...

Elessar said,
Wow, is that $50 million figure is correct, at $2.5 billion Google could have this deal paid off in 4 years or less. Very smart business move. Makes you wonder just how far Google will go in our lifetimes...

Once they add a little Google magic, who knows how much they could make!

thatguyandrew1992 said,

Once they add a little Google magic, who knows how much they could make!

Indeed. I'm thinking new markets + Google = $60-75 million a month. At that point they would have the deal paid off in about 3.5 years.

"Very smart business move. Makes you wonder just how far Google will go in our lifetimes." - that's if Google isn't hit with a monopoly lawsuit. If that happens it will stifle Google big time. But, if things go as they should we can expect to be impressed!

That's funny, I have never heard of Groupon or come across any group buyin deals in all my years of surfing the net. How they are making $50 mil per month is a mystery to me.

None the less, Murdoch payed 1/2 billion for Myspace and we all know how that turned out...

MaJoR ChAoS said,
That's funny, I have never heard of Groupon or come across any group buyin deals in all my years of surfing the net. How they are making $50 mil per month is a mystery to me.

None the less, Murdoch payed 1/2 billion for Myspace and we all know how that turned out...

+1. Never heard of them!

instant.human said,
Looks like it's more like $5 or $6 billion dollars, according to TechCrunch...

Mashable is saying $6 billion.

I used to buy my Dreamcast games from a 250 million dollar company that did this same thing 10 tears ago... The problem is, they're scammers by design and with Google "black box" behind it I can't imagine this being a win for consumers. Needless to say consumers bit back to every prior scam like this ... Wonder if google is being scammed

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