The report comes via multiple sources close to the discussions. The report adds that the discussions involve amounts far in excess of the $2 billion to $3 billion that Yahoo! offered Groupon in acquisition talks earlier this year.
Sources from both sides refused to comment.
This deal would be a natural for Google, and could be a natural to integrate into Google Maps, with Places and Hotspot support. Still, according to the report the deal could still fall through.
The report goes on to note that currently, the only other companies with enough cash to grab Groupon would be eBay, Amazon.com, and Microsoft.
You can see a short video interview in August where Kara Swisher talks to Groupon about possible Google interest below.