Google May Acquire Groupon for $6 Billion, and It Would Be Worth Every Penny. Forget the rumor that Google acquired Groupon for $2.5 billion; the search giant is about to close a deal for the group-buying service for a whopping $5.3 billion to $6 billion, according to multiple reports. It would be worth every penny. The deal is worth $5.3 billion with an additional $700 million earnout based on performance, according to All Things D. The New York Times reports that a deal could be completed as soon as this week. With a price tag almost double that of DoubleClick, Google's biggest acquisition to date, there are still plenty of ways for this deal to fall apart. Earlier this year, Yahoo tried to snag the group-buying company, but failed. Google, with its $30+ billion cash reserve, reportedly then offered Groupon $3 billion to $4 billion. Groupon pioneered the group-buying model through its deal-of-the-day business model.
There are many reasons to think that Google would be overpaying to get its hands on Groupon. It's that attention and expertise Google wants. No deal. Google to Launch Groupon Competitor. Google is preparing to launch Google Offers, the search giant's Groupon competitor, Mashable has learned. One of our sources has sent us a confidential fact sheet straight from the Googleplex about the company's new group buying service. "Google Offers is a new product to help potential customers and clientele find great deals in their area through a daily email," the fact sheet says.
Google Offers looks and operates much like Groupon or LivingSocial. Users receive an e-mail with a local deal of the day. They then have the opportunity to buy that deal within a specific time limit (we assume 24 hours). Once enough people have made the purchase, the Google Offer is triggered and users get that all-too-familiar $10 for $20 deal for that Indian restaurant they've never tried. From what we can tell, Google Offers will be powered by Google Checkout. Google is actively reaching out to businesses now to get them on board with Offers. Google essentially confirms Google Offers is real.
Google Launches Its Groupon Competitor Wednesday. Google Executive Chairman Eric Schmidt has announced that the search giant will launch its Groupon competitor on Wednesday, starting with Portland. The news that Google is getting into the daily deals space is not a surprise. Google attempted and failed to acquire Groupon for $6 billion last year. A few months later, Mashable exclusively learned that Google was developing a Groupon competitor called Google Offers. At the D9 Conference in Palos Verdes, California, Schmidt and Stephanie Tilenius, Google's VP of commerce, demonstrated the company's new product. The big selling point for Google Offers is that it will integrate seamlessly with Google Wallet, the company's NFC-based payment system launching this summer.
Google Offers will be available Wednesday in Portland and eventually will roll out to New York, San Francisco and other cities during the summer. Here's Google's Secret Plan To Kill Groupon In New York And San Francisco. GOOGLE OFFERS: Here Are The Secret Details About Google's Groupon-Killer.