November 19, 2010
Every now and then a possible buyout of a big company is rumored to be underway at the offices of Google, a few months back it was a $2.5 billion buyout attempt of Twitter and today it’s the world’s largest social coupon sharing website Groupon.
According to Kara Swisher at AllThings Google is willing to pay above the $2 billion to $3 billion offered to the company by Yahoo. At this time the two company’s are not disclosing any details about the deal or for that matter if a deal is even in the works.
The move would be a big win for Google who could claim yet another dominance in local search, currently their services already allow mobile and other users to search for local businesses and other locations based on their location. The move would also give a big boost to the company’s Google Places interface by providing a comprehensive local deals system to uses on Google Places. Google could of course then make money from the Groupon system itself and through their ads based platform, allowing for extra revenue to be created for the newly purchased company.
With Google attempting to build out their Google Me social networking system, the Groupon acquisition could also provide a nice integration into their social networking attempt, which in turn could bring with it a loyal customer base that already spends nearly $50 million per month with the social coupon site. Groupon customers provide each other with a valuable social networking service, so why not bring them together to help form your new social community? read more