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Monday, November 29, 2010

Google Considers Buying World’s Largest Coupon Sharing Site

Posted by @ 6:45 pm

There’s a rumors in the air that Google is showing great interest in buying the world’s largest coupon sharing website, Groupon.

Worth an estimated $4-$5 billion, Groupon is a Chicago-based privately owned company that was launched two years ago. They send out daily emails to its members with about 200 deals from over 250 markets in North America.

Groupon has previously turned down an offer from Yahoo!, but apparently Google is prepared to pay $2 – $3 million more than what Yahoo! could offer. I’m baffled as to why Google would see Groupon as a worthwhile purchase.

Google and Groupon have both refused to comment on the rumors.

The only reasoning I can come up with is that Groupon has managed to nail local online advertising (promoting local businesses to local people) and it has a rapidly growing advertising and subscriber base.

I believe that Groupon will be the party to benefit more from any deal. I’m sure Groupon and other coupon companies spend a great deal of money on AdWords for subscriber acquisition, so if this deal does go through Groupon could see their deals being given more prominence in the relevant search results across Google’s products. This could even include specific advertising in YouTube videos, Google News, Google Places and other such products giving Groupon a big lead over its competitors.

The trump card for Google in this deal would be Groupon’s database of US based local advertisers who spend $133 billion to advertise their coupons and businesses to local shoppers.

Even if Groupon decides not to seal this deal with Google it still has a bright & secured future ahead. Apparently other online giant like eBay and Amazon are looking to a deal with Groupon – so Google, you better act quickly!

Who do you think would make the best choice for a Groupon buyout?

Courtney Mills Courtney is an online marketing and communications specialist at ineedhits - a leading search engine marketing firm with over 16 years experience. Courtney has been living and breathing online marketing for over 5 years. She specializes in web and communication marketing, while providing news and opinion to online marketing communities.

View Courtney Mills's profile

Discussion (2 - comments)

Great article and an even better opportunity for Google. It’ll really help them out in the local business market. And with Google’s infrastructure behind them, perhaps Groupon’s site will be a little more stable and stop crashing whenever there is a good deal or a lot of publicity. I think the $6B number being discussed is a fair number given the situation, despite what they naysayers might think. Here’s to hoping this one goes through.

Data Driven Marketing

By Data Driven Marketing - November 30, 2010

Thanks for the great post. I love Groupon, and I think it’s very intresting that such a simple idea has created such a buzz! I think it is a wonderful way for local business to get their name out there and build their client base as well. It’s a win win for everyone. I’d say keep it private!

By Dena - December 7, 2010

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