5:30 am November 30, 2010, by Henry Unger
Google is close to a deal to buy Groupon, the online discounter, for as much as $6 billion, the New York Times is reporting.
A deal, in the $5 billion to $6 billion range, could be struck as soon as this week, people with direct knowledge of the negotiations told the Times. They cautioned that the talks still could fall apart.
At that price, Groupon — known for its daily discounts — would be one of Google’s largest acquisitions, dwarfing Google’s $3.1 billion acquisition of DoubleClick in 2007, the display advertising giant, the Times writes.
The acquisition would also be Google’s boldest foray into local business online advertising, a large and untapped market it has been trying to get into, the Times reports.
Since its founding in 2008, Groupon has been growing at a nearly unprecedented pace, the Times writes. The company, whose name is a combination of “group” and “coupon,” specializes in providing customers with discounts purchased in bulk. Subscribers receive notifications of one deal a day, tailored to their location and profile. The average Groupon deal offers between 50 percent to 90 percent off retail goods and services, the Times reports.
What do you think about this deal?
Does Google’s involvement excite or worry you? Do you think Google is trying to take over the world or just being an aggressive competitor?
- Henry Unger, The Biz Beat
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