Groupon Brushes Off Google's $6 Billion Offer
Six billion dollars isn't cool. You know what's cool? Groupon, the Chicago-based mega-start-up of online group coupons (get it?), turning down a six billion dollar offer from
SkyNet Google. The tech giant has more money than God and often uses it to snap up smaller companies. But often, they can fall by the wayside in a company that's busy changing the world every day. Remember Dodgeball? Exactly.
Google has been in negotiations to scoop Groupon all week, in what would have been one of their largest acquisitions ever:
At that price, Groupon -- known for its daily discounts -- would be one of Google's largest acquisitions, dwarfing its $3.1 billion purchase of DoubleClick, the display advertising giant, in 2007.
The deal would also be Google's boldest foray in local business online advertising, a large and untapped market it has been trying to get into, most recently by promoting Marissa Mayer to oversee the local business and attempting to buy Yelp, the local review site, last year.
Groupon, though, is in an advantageous spot. Firstly, their buzz is ginormous. The service features a deal every day on food, entertainment or material goods, but can promise participating businesses a minimum number of customers by setting a benchmark: For instance, maybe 150 people have to buy that half-price burrito and Groupon can't get enough people to commit to purchase, than no one gets the deal. The service is already in over 150 cities and is growing.
Their annual revenue, as TechCrunch explains, is already $2 billion, though half goes back to the merchant eventually. TechCrunch also indicates the company may be eyeing an IPO next year.
Google, in the meantime, will kill some bunny rabbits with lasers to blow off some steam.
Get the ICYMI: Today's Top Stories Newsletter Our daily newsletter delivers quick clicks to keep you in the know
Catch up on the day's news and stay informed with our daily digest of the most popular news, music, food and arts stories in New York, delivered to your inbox.