Monday, November 29, 2010

Groupon acquired by Google for $2.5 billion?

Rumors have been flying hot-and-heavy about a possible Google acquisition of Groupon for over a week now. The latest rumor is that the deal is done, for a reported $2.5 billion.

Vator News says its source is reliable. At the same time, BoomTown, which was first to report the talks, said that its sources say that any such deal would be upwards of $3 billion. Yahoo! failed to negotiate an acquisition of Groupon for somewhere between $2 to $3 billion earlier this year.

Groupon is a deal-of-the-day website, localized to major markets in the United States and Canada. It serves up one deal each day for each market, usually different, although it has done nationwide Groupons, as well. If enough people sign up, the Groupon is valid. Otherwise, the deal falls through.

Groupon reportedly has revenues of more than $50 million monthly and there are copycats sprouting like weeds. As we said earlier, an acquisition of Groupon makes a lot of sense for Google, as one could imagine how well it would merge with Google Places. Of course, there is no official announcement, as of yet.

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