Google to Buy Groupon?

  • Share
    Share Video

  • Add
  • More
    Report this video as:
0 0
You have already voted for this video.
You're watching multisource tech video news analysis from Newsy. Rumors are rumors -- unless they’re reall...
You're watching multisource tech video news analysis from Newsy. Rumors are rumors -- unless they’re really juicy. Then -- they grow legs of their own -- and become news. So say several media outlets -- reporting that Google is about to buy social discount shopping site Groupon -- for $2.5 Billion dollars --- or more. We’re billion bean-counting from Tech Eye, Marketing Pilgrim, Bloomberg, All Things Digital, Techie Buzz and The Wall Street Journal. The significance of this deal? Imagine Google’s information and penetration, combined with AdMob’s marketing -- and coupons galore. Can you say, potential financial juggernaut? Tech Eye describes how Groupon works, and why it is such an attractive investment for Google. “Groupon effectively works like a massive advertising network, with discounts enticing people to visit affiliate websites. It has around 20 million subscribers in 29 countries, making it a very big audience for Google to work with.” Over at Marketing Pilgrim, Andy Beal asks the question -- did somebody spike the Thanksgiving Day apple cider over at Google? ‘Cause the price of this deal is HUGE. “....Groupon might just be a bigger acquisition than the monstrous purchase of YouTube back in 2006. Not only is the purchase price about $1B more, but unlike YouTube at the time, Groupon is said to be raking in as much as $50 million a month! The big questions is: did they get a discount on the price with a coupon?” This isn’t about Google wanting to take over the world. On Bloomberg, an analyst says, it wants to take over your back yard. “What it helps bring to Google, is more emphasis on local. You know, local is more than 20% of searches on Google. More than 80% of all purchases are made within 15 miles of the house. And Google is really forcused on it. They introduced Google places this year, which is a listing services for businesses. They introduced Google local search last month. And this month they introduced Hot Pot, which is a recommendation service for local business like Yelp.” All Things Digital’s Kara Swisher, who originally broke the “rumor” says, Google may be getting a lot more than it bargained for with Groupon. For government regulators -- this is -- GAME ON. “....as it purchases the social group buying phenom, the search giant will be buying a whole lot of pricey regulatory scrutiny too. That cost will be, many think, much deserved and will definitely not come at any discount, given the rising worries in Washington about the swaggering power of Google." Techie Buzz says, until the government signs off -- this deal is not done. “A major issue with the acquisition would be getting it approved by the regulators. Google has been quite aggressive with the pots of cash that the Adsense keeps generating. It recently bought Admob for $750 million, and ITA Software for $700 million. The Groupon deal, if true, would be its biggest buy since Doubleclick ($3.1 billion) in 2007.” And The Wall Street Journal reports, there’s that minor issue, or another suitor trying to swoop in at the last minute to undo the deal. “EBay and Amazon both would make sense as potential owners of Groupon. Again, they have relationships with lots of third party sellers, and they have business relationships with millions of customers, so it be a logical extension for the business in the case of either Amazon or Ebay.” One site even has a new name for the combined site. GOOPON. So what do you think? Group-on Game on? Or -- c’mon. Get more multisource tech video news analysis from Newsy. Transcript by Newsy.
Categories:
Related