Over the past week, rumors that Google had put in a bid to purchase Groupon, a popular deal-of-the-day site, reached a saturation point. Everyone, it seems, weighed in. First, the rumor was that the search giant had shelled out $2.5 billion. New reports suggest that number is probably closer to $5.3 billion with an additional $700 million earnout, making this — by far — Google’s biggest acquisition ever. And it’s a smart buy.
With a high repeat usage, Groupon’s business model, and its use of a dedicated ad sales team, seems like it might help Google’s local advertising push, which generates only 30% of Google’s overall revenue, even though Google has developed local search, mapping, etc., writes Helfstein.
Google has bought Groupon for $2.5 billion, Vatornews reports citing a “reliable source” familiar with the situation.
The acquisition – which is unconfirmed at this point – follows the rumors about Google being in talks to buy the popular local deals site, after Yahoo had failed to negotiate an acquisition for a $2 billion to $3 billion earlier this year.