Logo

Why Google May Be Willing to Pay $5 Billion For Groupon

Dec 1, 2010  •  Post A Comment

"Google may be on the verge of clinching its biggest deal yet with a reported $5-billion bid for Groupon, the fast-growing company that is blitzing the Internet with daily coupon deals."

So writes Jessica Guynn and Andrea Chang in the Los Angeles Times. Since that’s an astounding amount of money, why would Google be willing to ante up so much dough?

Guynn and Chang explain why in their article: "Despite Google’s success in selling text ads that accompany search results, it has missed out on online coupons that are influencing how people spend money offline."

The article continues, "That may help explain Google’s apparent willingness to pay billions for Groupon. An estimated 42% of in-store sales are influenced by online research, but only 7% of purchasing takes place online, Susan Wojcicki, Google’s senior vice president in charge of advertising products, said at a recent conference. Investors may be less certain. Google shares slipped 4.5% Tuesday over what analysts said was concern that the price tag may be too hefty."

And, as the article notes, " ‘Google’s got the cash to spend, and Groupon is one of the few properties worth hunting,’ BGC Partners analyst Colin Gillis said. ‘If Google buys Groupon, we will have to wait and see if it’s worth the premium Google has to pay.’ "

21 Comments

  1. Hands down, Apple’s app store wins by a mile. It’s a huge selection of all sorts of apps vs a rather sad selection of a handful for Zune. Microsoft has plans, especially in the realm of games, but I’m not sure I’d want to bet on the future if this aspect is important to you. The iPod is a much better choice in that case.

  2. Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.

  3. Nice!! Great Ifo. Great People. Great Blog. Thank you for all the great sharing that is being done here.

  4. Amazing freakin blog here. I almost cried while reading it!

  5. Great blog!! You should start many more. I love all the info provided. I will stay tuned 🙂

  6. Hey how are you doing? I just wanted to stop by and say that it’s been a pleasure reading your blog. I have bookmarked your website so that I can come back & read more in the future as well. plz do keep up the quality writing

  7. I love the way you write and also the theme on your blog. Did you code this yourself or was it done by a professional? I’m very very impressed.

  8. This is the best blog I’ve ever seen in my life! I really appreciate you taking the time out of your busy day to share your this with everyone.

  9. Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.

  10. I really like the colors here on your blog. did you design this yourself or did you outsource it to a professional?

  11. High quality info here! Keep up the great work. I love the feelings being expressed.

  12. Nice blog here! Also your website loads up fast! What host are you using? I wish my website loaded up as fast as yours lol

  13. You have a point. Very insightful. A nice different perspective

  14. Neat blog layout! Very easy on the eyes.. i like the colors you picked out

  15. I am extremely impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you customize it yourself? Either way keep up the nice quality writing, it’s rare to see a nice blog like this one these days.. 🙂

  16. Interesting thoughts here. I appreciate you taking the time to share them with us all. It’s people like you that make my day 🙂

  17. Love this blog, keep up the good writing.

  18. Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy.

  19. Amazing freakin blog here. I almost cried while reading it!

  20. This is good info! Where else can if ind out more?? Who runs this joint too? Keep up the good work 🙂

  21. A selfsame good post, i must enounce this is really what we are here for, this forum definitely needs posters like you. Fill the forum with some good tips and information, i did follow mates of your posts, they been relevant and good items were elaborated. I must say we should ever exist cook to billet in our best cognition to abide people. Actually appreciate your post.

Leave a Reply to Buy Backlinks Cancel Reply

Email (will not be published)