Pull Out Your Checkbooks - Google Looking To Buy Groupon for $5 Billion or more



Schwarzenegger said:
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. Reports About Groupon's Revenues And Profits Don't Make Sense -- Here's Why

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!
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Agreed. I think Groupon is faddish simply because it's easily replicated (how many copies exist already on CPA networks?) and it's sustainability with businesses is suspect. As I've said before, I'd love to see some data on how many businesses are actually repeat customers. Is cutting your profit margins by 50% or more really affecting SMB's long term client/ customer retention- or was it just a short-lived ploy to get people in the door during the worst recession the US has seen in the last 50 years?

Unarmed Gunman said:
YouTube - You Need To Diversify Yo Bonds Nigga

They better diversify because Facebook is about to bite that ass in search.
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Agreed again. I think if Google is serious about acquiring Groupon the writing is on the wall that they fear Facebook's pending "local" rollouts. It's easier to grow an established web property than start a new one. Look at the ridiculous failure of Buzz, for example, in an attempt to replicate Twitter et al.
 
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