Saturday, November 20, 2010

Acquisition Rumors Link Google and Groupon

Daily deals site Groupon might soon become the property of another company whose name starts with "G" and contains a couple "o"s, according to a new report. Kara Swisher reported earlier this morning, According to multiple sources close to the situation, Google is in discussions with local deals powerhouse Groupon about buying it. Sources said the price being considered is certainly no discount and well above the $2 billion to $3 billion that Yahoo offered Groupon in acquisition talks that took place earlier this year.

The idea of an increased bid seems reasonable, since the Yahoo discussions didn't work out.  Also, Google had $33.4 billion in cash, cash equivalents, and marketable securities just sitting around as of September 30th, so the company can afford to pay a little more.

Saving money has become a popular activity, and Groupon is among the top players in the field.  Its ties to Facebook and Twitter, along with its mobile presence, then add additional value. There is one major issue in a possible Google purchase of Groupon because more regulatory scrutiny by the federal government over its power online.

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