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Monday, November 29, 2010

Today’s Big Rumor: Google Buys Groupon for $2.5 Billion

Google has bought Groupon for $2.5 billion, Vatornews reports citing a “reliable source” familiar with the situation.
The acquisition – which is unconfirmed at this point – follows the rumors about Google being in talks to buy the popular local deals site, after Yahoo had failed to negotiate an acquisition for a $2 billion to $3 billion earlier this year.
Groupon is one of the quickest Internet success stories in recent memory, with a $1 billion and climbing valuation, reported revenues of more than $50 million per month (the site is relatively new, having been launched in November 2008) and copycats, trying to emulate its success, sprouting nearly every day.
The acquisition, if true, makes a lot of sense for Google, giving it a wonderful opportunity to fuse Groupon deals with its local business directory, Google Places. On the other hand, for Groupon it’ll be much easier to fend off all those similar services under Google’s wing.
We’ve reached out to both Groupon and Google for comment on the deal, but haven’t yet received word from them.

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