Google to Buy Groupon....



they know what they are doing and def know their metrics. its fucking google

furthermore, groupon rapes content network and i feel if they worked out the numbers correctly (because 6 billion is a large number to fuck around with) should be very lucrative for them.
 
Garrett said:
Bad move? After Google buys them, Groupon will be hand holding tens of thousands of businesses into online advertising (ie Adwords)

Sounds like a great move to me
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couldn't agree with you more =) :bowdown:
 
Of course they are... Any online business concept that caters to local businesses makes Google all wet.
 
I think it's a good move... and not because it's Google, they had their failures as well... anyone remember Google Wave? lol
 
tacoX said:
There is one groupon, and the rest are failboat posers. I think it's a wise move and good for diversification.
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Livingsocial is definitely not just a "failboat poser". They copied the model, but that doesn't mean they aren't a growing and profitable business. They are pretty much the only other group buying site that has enough intelligence in media buying to make an effort against groupon's growth. Outside of those 2 yeah the model is just as bad as podunk cpa networks springing up every second.

For the record yahoo is making some sort of move here with revshare on deal sites like this, interesting as they partnered with groupon...(and even tippr and buywithme, group buying sites that have been on cpa networks)
Yahoo! Launches Comprehensive Local Offers Program - Yahoo! Finance


6 billion is a lot, not saying they can't justify it or change around the business a little to enhance it, but there are concerns for the longevity of groupon as it is now.
 
dr-evil.jpg

5.5 Billion Dollars
 
what. estimated 5-6 billion dollar offer, thats an awful lot of money to say "no thanks to"
 
wtf blunt is he smoking? people can just as easily use any other alternative... it's not like facebook (referring to the similarity of bill $ rejections ) where the users are too invested in the site to leave so easily.

then again, you gotta be a lil crazy to be a founder. it should be interesting to see how things pan out.
 
$6 billion. how did he turn that down, if true. in a few years this will be topping lists of stupidest internet business decisions along with ebay buying skype, aol buying bebo and digg v4
 
They could be holding out for a higher bid, or looking for another suitor...

I, too, am surprised they'd turn it down.


At $5bn (pre earn-out), Google was going to be paying ~$200 / subscriber (using the 25mm email list figure). Implies avg user spends at least $400 on Groupons (50% margin) for Google to breakeven. More, to earn a return on their investment.

Anyone have a sense of Groupon usage / purchase stats?
 
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I'm glad groupon turned it down . This would avoid google from blocking groupon on adwords or groupon removed from cpa networks and shit like that. We all know that google loves to make things less profittable for us marketers.
 
Compound said:
Also - won't Facebook Deals serve as a formidable competitor to Groupon?
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^^This.

The people who support Groupon walking away will cite that Groupon stands to earn $2BB this year, so a $6BB buy out only represents 3 years earnings.

On the other hand, Groupon's ability to sustain that is questionable. There are several academic articles and many anecdotal reports out there that support Groupon primarily being a "deal hawk" site and not actually resulting in repeat or a long-term increase in business for the small businesses that use the service.

Google was looking for a turn-key local solution. Facebook "deals" would represent a serious threat to Google's local user reach, and they've been stepping up their game in the local space with new maps roll-outs, Google places, etc. all year. Groupon would have been a quick, easy, already branded solution to bring under their umbrella.

That said- Facebook & Google can replicate and scale Groupon's biz model a LOT faster than Groupon can rival their userbase. (Yes, point out the failure of "buzz" as a twitter killer here- but you can't argue the fact that Groupon will never have the mass reach Google or Facebook does).

Groupon makes about $200k per employee.

Google, on the other hand, makes 1.2M per.

Groupon's founders just shot themselves in the foot. They could have walked away with 6BB now and moved on to another start-up or never worked again.
 
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