Pull Out Your Checkbooks - Google Looking To Buy Groupon for $5 Billion or more
- Thread starter dchuk
- Start date
not worth it
Groupon is definitely big but it's definitely not worth 5-6 billion. They made a good decision buying youtube because it had high and solid traffic with flexible technology and could integrate with what they already had.
Groupon seems to be one of those trends on the internet like myspace and twitter. It will definately have a large userbase but I feel that people just flock to these sites because it's the "new thing". People don't go on to these sites for specific products. It's always the odd products and services. http://www.businessinsider.com/what-are-groupons-real-numbers-2010-4
They also take a 30% cut from sales which is a lot with huge competition in an industry where others can steal their business by simply offering to take a smaller piece of the pie (a lot like aff networks). On top of that users don't really have an incentive to stay with just groupon so users can easily switch to a better discount site.
I don't see why google can't make their own groupon... They have a missive brand. Have already reached tons of local businesses. Can then leverage the deals on adwords. Fucking recipe for massive benjamins!
Groupon is definitely big but it's definitely not worth 5-6 billion. They made a good decision buying youtube because it had high and solid traffic with flexible technology and could integrate with what they already had.
Groupon seems to be one of those trends on the internet like myspace and twitter. It will definately have a large userbase but I feel that people just flock to these sites because it's the "new thing". People don't go on to these sites for specific products. It's always the odd products and services. http://www.businessinsider.com/what-are-groupons-real-numbers-2010-4
They also take a 30% cut from sales which is a lot with huge competition in an industry where others can steal their business by simply offering to take a smaller piece of the pie (a lot like aff networks). On top of that users don't really have an incentive to stay with just groupon so users can easily switch to a better discount site.
I don't see why google can't make their own groupon... They have a missive brand. Have already reached tons of local businesses. Can then leverage the deals on adwords. Fucking recipe for massive benjamins!
In April 2010, Groupon raised $135 million from Digital Sky Technologies, a Russian investment firm.
I don't understand how these fucken sites need that much money to run
I don't understand how these fucken sites need that much money to run
how not? they have 3000 employees, most of which is sales force for the 300 cities or whatever they serve in 20 countries. it's expensive to hire people
They have about 2400 employees worldwide (apparently). They spend $13m a month on advertising...
Reported earnings of 50 million a month from only roughly 150 cities out of the over 400 with over a million people worldwide. Sounds like a fair price to me. As long as the goog doesn't fuck it up.
Google is not going to raise their initial bid of 2-3 billion to 5-6 billion without seeing huge potential.
Also, they have 33 billion dollars on hand. Why not spend some $$.
That's like us buying something for a few thousand bucks. Its worth it for them.
Im saying it now. Google will run the country soon! ha.
Also, they have 33 billion dollars on hand. Why not spend some $$.
That's like us buying something for a few thousand bucks. Its worth it for them.
Im saying it now. Google will run the country soon! ha.
the acquisition is worth it for two reasons: 1, google has the money literally sitting in banks, they aren't stretching to make the purchase. 2, google is notorious for failing to build cool shit that ALSO builds a userbase...groupon is nothing special, they could easily engineer their own. They're buying the brand to secure a solid spot in the local advertising space.
Groupon is a massive email list. Google is probably drooling over it. Look at Youtube, they left the branding intact, most people don't even realize it's owned by google now.
Groupon is a massive email list. Google is probably drooling over it. Look at Youtube, they left the branding intact, most people don't even realize it's owned by google now.
