The blog world is abuzz with the news that Google has almost certainly purchased GroupOn for $2.5 Billion, which is a ludicrously high amount. We look at the news and sources below.
According to VatorNews, a “reliable” insider has confirmed the report, and this is the culmination of weeks of guesswork about whether this was real or not. It’s really an incredible sum of money, especially considering that GroupOn’s strength is in the nature of its idea (group buying) as much as it is about its own brand. Could Google whip up a division for a lot less money, and get them to start developing connections with big brands for a similar service? Sue me if I say that’s an easy YES.
But this is definitely big news for the group buying and social shopping industries. These key ideas are changing the way buyers find products online, and Google making such a bold step means that we’ll see a lot more startups and a lot more big name interest in the space. I still think we’re very early in social shopping, and I’ll be writing a piece about it shortly.
I have a feeling Google is only buying GroupOn because “Google GroupOn” sounds so catchy. So far, though, no insiders have confirmed this idea. We’ll see if this whole deal really goes through in the next few days.