Google is near a deal to acquire Groupon, the pioneering online discounter, for as much as $6 billion, people with direct knowledge of the matter said Monday.
A deal, in the $5 billion to $6 billion range, could be struck as soon as this week, these people said, cautioning that the talks still could fall apart.
At that price, Groupon would be the largest acquisition ever for Google. The deal would make Google the market leader in the fast-growing arena of locally tailored discounts.
The acquisition would also be Google’s biggest foray into local business advertising online, a large and untapped market it has been trying to get into, most recently by promoting Marissa Mayer, an executive, to oversee the local business and trying to buy Yelp, the local review site, last year.
Over the last decade, Google has acquired dozens of companies, spending billions for the online advertiser DoubleClick and the video site YouTube.
Since it was founded in 2008 by its chief executive, Andrew Mason, Groupon has become the fastest-growing Internet company ever.
Groupon, whose name is a combination of the words coupon and group, is a group-buying site with a local focus. Subscribers receive a deal each day, tailored to the users’ location and profile. Although Groupon will offer smaller side deals, the objective is to highlight one discount for each user. A typical deal is 50 to 90 percent off retail goods and services, like restaurant certificates, sky diving lessons and spa services. It’s a formula that has taken off, turning Groupon into a cash machine with more than 12 million registered users and estimated annual revenue above $350 million.
A deal, in the $5 billion to $6 billion range, could be struck as soon as this week, these people said, cautioning that the talks still could fall apart.
At that price, Groupon would be the largest acquisition ever for Google. The deal would make Google the market leader in the fast-growing arena of locally tailored discounts.
The acquisition would also be Google’s biggest foray into local business advertising online, a large and untapped market it has been trying to get into, most recently by promoting Marissa Mayer, an executive, to oversee the local business and trying to buy Yelp, the local review site, last year.
Over the last decade, Google has acquired dozens of companies, spending billions for the online advertiser DoubleClick and the video site YouTube.
Since it was founded in 2008 by its chief executive, Andrew Mason, Groupon has become the fastest-growing Internet company ever.
Groupon, whose name is a combination of the words coupon and group, is a group-buying site with a local focus. Subscribers receive a deal each day, tailored to the users’ location and profile. Although Groupon will offer smaller side deals, the objective is to highlight one discount for each user. A typical deal is 50 to 90 percent off retail goods and services, like restaurant certificates, sky diving lessons and spa services. It’s a formula that has taken off, turning Groupon into a cash machine with more than 12 million registered users and estimated annual revenue above $350 million.
0 comments:
Post a Comment