Groupon Will Stay Independent Leaving Google’s Offer


The tech industry has been looking forward for much awaited result of the multi billion acquisition offer of Google to the Chicago based company Groupon. According to the report of the website All Things D, Google has offered $5.3 billion for Groupon, with a $700 million earnout. If accepted, this would make its owners billionaires in an instant. If materialized, Groupon would be the most expensive acquisition that Google could ever had next to DoubleClick in 2007.

The offer might have been very tempting but Groupon declined the offer and decided to stay independent believing that it is better off on its own. The company has improved the idea of online advertising in its unique business style. They were able to attract more merchants as they will not pay for marketing until they get a customer in the door which is contrary to the usual online marketing these days. It has launched its new site lately having its all new ‘Groupon store’ wherein local merchants can sell deals targeted to users who have expressed interest in that kind of business and Groupon will collect a 10% commission on sales of these deals.

These marketing strategy has been very precious to a lot of big companies like Google as it would definitely boost its standing in the race for local business ad dollars. However, the offer has been declined for a reason that has not been clear yet. Whatever it is, it is expected to be something greater that what Google can offer.

Leave a Reply

Your email address will not be published. Required fields are marked *