Skip to main content

Did Google buy Groupon for $2.5 billion over the weekend?

google-groupon-twitterBack in September, Groupon CEO Andrew Mason and Google M&A lead Neeraj Arora had an intriguing back and forth on Twitter. The thread included a cryptic note about “hard” work from Mason, and a vague congratulations from Arora. This hardly seemed indicative of anything, until now, as rumors are wildly pointing to a Google-Groupon acquisition that has been in talks for some time.

VatorNews is reporting, based on an anonymous insider source, that the Mountain View company bought the daily deals site for $2.5 billion, which is significantly less than initial speculation concerning the buy out.

If the yet-unconfirmed deal turns out to be true, Google will have succeeded where Yahoo failed. Yahoo attempted to acquire Groupon earlier this year but was unable to come to an agreement with the popular startup. In addition to turning down Yahoo, Groupon has also been attached to the idea of remaining independent.

So why the change of heart? Possibly the skyrocketing number of Groupon imitators and strong competitors, most notably in Facebook’s recently launched Deals feature has something to do with it. It’s also been reported that similar site LivingSocial is actually growing faster than Groupon, and that it has the capacity to continue. The deal with Google seems like a win-win for both companies, allowing Google to finally bolster its sagging social attempts as well as its Places application, and giving Groupon some protection from its ever-increasing list of rival sites.

Google is clearly attempting to stake out some territory in the burgeoning local market. The company recently launched HotPot, a social, review-focused extension of Google Places (yes, quite like Yelp, which Google failed to acquire) and has also revamped Google Products to include more local businesses that carry searched-for items. And while both seem perfectly capable of performing these services, they don’t carry the notoriety that Groupon does. Ushering in the well-established site would give Google a leg up in this market.

And even though this notoriety comes with a hefty price tag, The San Francisco Chronicle points to a research report claiming the company has some bragging rights when it comes to acquisitions, referencing similar deals with YouTube and DoubleClick. “Google is using its cash to buy into an emerging area of the Internet, thus maintaining its relevance in new segments. Since YouTube and DoubleClick are both gaining and posting sizable revenue numbers, we think Google’s acquisition history has been solid.”

Molly McHugh
Former Digital Trends Contributor
Before coming to Digital Trends, Molly worked as a freelance writer, occasional photographer, and general technical lackey…
This pack of corn puffs hasn’t left my gaming PC — here’s why
A pack of Kuai Kuai sitting on a gaming PC.

In Taiwan, I fell in love. I didn't find a spouse, a pet, or suddenly decide to move my life to the other side of the world. I fell in love with a coconut-flavored corn puff called Kuai Kuai (or "Guai Guai"). And since returning home, I've had an unopened bag of the snack leaning on my gaming PC.

If you're one of the few that knows about Kuai Kuai, you already know what's up. For everyone else, you probably think I'm a little off my rocker. You might be onto something there, but Kuai Kuai has an entire culture around it that I learned about on my trip to Computex this year, and it's been a great way to bring a little piece of Taiwan home with me.

Read more
The new Surface Laptop beats the MacBook Air in every way but one
The Surface Laptop 7th Edition on a white table.

The Surface Laptop was always meant to be a proper MacBook Air competitor. It had the sleek design and branding to pull it off, but was always lacking in performance and battery life to compete.

With the move to Qualcomm's Snapdragon X chips and Copilot+, though, there was a renewed hope that the Surface Laptop 7th Edition could not only compete with the MacBook Air M3 -- but actually defeat it. To my own surprise, after spending some time with the device, I'm convinced it may be the best Surface device ever made.
Specs and configurations

Read more
Prime Day 2-in-1 laptop deals: Dell, HP and more
The Dell Inspiron 14 2-in-1 laptop against a white background.

One of the more versatile options when it comes to the best Prime Day laptop deals are 2-in-1 laptops, and you'll find quite a few to choose from among the Prime Day deals going on right now. Brands like Dell, HP, and Lenovo are seeing some of their most popular 2-in-1 laptops discounted for Prime Day, and we've got the beat on the best Prime Day 2-in-1 laptop deals to shop. You'll find below our choice for the best 2-in-1 laptop Prime Day deal, as well as some other options if it's not the right fit for you. Prime Day deals are coming and going quickly, so if you see a laptop deal that works for you be sure to grab it while you can.
Best 2-in-1 laptop Prime Day deal
Dell Inspiron 14 2-in-1 laptop -- $450, was $700

The Dell Inspiron 14 2-in-1 laptop is a relatively affordable option that offers the versatility of this type of device alongside reliable performance. It's equipped with the AMD Ryzen 5 7530U processor, integrated AMD Radeon Graphics, and 8GB of RAM, which will be more than enough for daily tasks that you need to get done for work or school. The Dell Inspiron 14 2-in-1 laptop also features a 14-inch touchscreen with Full HD+ resolution for sharp details and bright colors, and it's got Windows 11 Home pre-loaded in its 512GB SSD that should provide enough storage space for your important documents.

Read more