Well that was much ado about nothing, wasn't it? I wanted to furnish an update to the blog I wrote last week concerning unconfirmed reports of a Google/Groupon deal.
It appears as if Groupon has turned down a $6 billion package which includes executive incentives. Neither company is commenting on the negotiations.
Wailin Wong reports:
"Evaluating Groupon's decision is especially vexing because the private company is expanding at a whirlwind pace, making any kind of outside valuation difficult. A Forbes cover story in August called the start-up 'the fastest-growing company ever.' Published reports have put its annual revenues at $500 million, while the All Things Digital blog said Friday that Groupon stands to rake in $2 billion in sales in 2010."
That's pretty staggering. It seems like I just heard of Groupon a few months ago. I've seen reports postulating many reasons for the deal's demise:
In a Chicago Breaking News article by Melissa Harris and Wailin Wong, they report on the interest of Google in Groupon:
"Google, which is pushing into local search advertising, had been hoping to tap into Groupon’s massive human network of sales employees and their relationships with small businesses across the country. The interest in Groupon, which also was reportedly courted by companies such as Yahoo, underscores the start-up’s meteoric growth — its valuation was $1.3 billion in April — and the industry’s belief that the company’s business model is a sustainable one."
But, be careful, Groupon, because your main competitor, LivingSocial, now has the backing of recent acquiror Amazon, who bought the local advertising company for $183 million.
As a parting note, I'll leave you with a fun survey I found on Mashable that asks, "If you were Groupon, would you have taken Google's offer?" I went with "Heck yes!..." As of this blog post, the results were:**