Groupon reportedly spurns $6 bln Google offer

groupon reportedly spurns 6 bln google offer logo  dec 2010

The famous daily-deal coupon Web site Groupon has been the subject of intense takeover pressure from Internet giant Google—but Groupon has apparently walked away from negotiations, reportedly leaving an offer of as much as $6 billion on the table. Instead, Groupon is considering going public on its own, with plans for an IPO to be worked out early next year.

Neither Google nor Groupon have commented publicly on the negotiations. However, reports in BusinessWeek and other outlets cite persons “close to the talks” indicate that while Groupon’s founders were somewhat divided over turning down the $6 billion offer (including substantial executive compensation), Groupon founder, CEO, and largest shareholder Andrew Mason was concerned about how a takeover would impact relationships with merchants and employees, as well as how a takeover would change Groupon’s strategic direction. For, the founders seem to have decided to keep ahold of their business—and 35 million Web users—to themselves and keep going on their own. However, industry watchers note that Groupon is still a likely acquisition target, and Google may well come back to Groupon with a sweetened deal or other terms that make an acquisition more palatable.

Google’s interest in Groupon stems from its desire to be a bigger player in the local advertising market, which is estimated to account for more than $130 billion per year in the United States. Local advertising also ties in deeply with Google’s emphasis on location-aware services, particular for mobile devices.

If the Groupon deal were to go through at a figure near $6 billion, the deal would mark Google’s largest acquisition to date. Google paid about $3.2 billion to take over online advertising and metrics firm DoubleClick back in 2007; back in 2006, most of the technology industry though Google was nuts for paying $1.65 billion to take over YouTube. However, Google easily has the cash: the company has over $33 billion in cash and market-ready security onhand.

The reports of escalating takeover prices for Groupon have sparked discussion of whether the business is over-valued, and might represent a return of “irrational exuberance” in the technology sector that led to the dot-com bust a decade ago—Groupon was evaluated as being worth about $1.3 billion earlier this year. Consumer advocates have also raised concerns that if Google were to integrate Groupon with Google Search, it might become impossible for competitors to gain traction in a daily-deals market.

Groupon is an undeniable success in the online business world: founded in 2008, Groupon operates in more than 300 global markets and boasts some 35 million users attracted to offers to significant discounts on everything from standard retail merchandise to spa treatments and specialty services. Groupon earns money by keeping part of the revenue raised via the coupon offers.

Gaming

Has it really been 17 years? The past, present, and future of the Xbox

From "DirectX Box" to "720," it's been a long, strange trip for Microsoft's Xbox gaming console. Here is what happened, from its odd beginnings to the rumored Scarlett console with streaming.
Deals

Here are 20 portable tech gadgets you’ll want to use every day

If you're looking for portable tech to keep you charged up while on the go (or for some great small gift ideas), we've rounded up 20 must-have gadgets. You'll find everything from a mini gaming controller to a folding Bluetooth keyboard.
Deals

The best Presidents’ Day sales 2019: Amazon, Walmart, Dell, and more

Presidents' Day sales are a great chance to score electronics, clothing, home and office stuff, and other goodies at a discount. We’ve smoked out a large handful of the best of these Presidents' Day deals, from tech to bedding, to help…
Computing

Wi-Fi helps connect all of our devices at high-speed, but what exactly is it?

What is Wi-Fi? It's a technology we all use everyday to connect all of our portable devices, but understanding how it works and how far it's come from its humble beginnings is another thing entirely.
Computing

Intel expects Apple to transition Macs to ARM processors in 2020, report says

It has been rumored for some time that Apple could transition away from Intel to ARM processors, but a new report now claims that Intel is aware of the decision and that it could happen in 2020.
Computing

Still miss Windows 7? Here's how to make Windows 10 look more like it

There's no simple way of switching on a Windows 7 mode in Windows 10. Instead, you can install third-party software, manually tweak settings, and edit the registry. We provide instructions for using these tweaks and tools.
Computing

The rumors were true. Nvidia’s 1660 Ti GPU, a $280 powerhouse, has arrived

Nvidia has officially launched the GTX 1660 Ti, its next-generation, Turing-based GPU. It promises to deliver all the performance and efficiency for all modern games, but without stepping into the high price range of the RTX series. 
Computing

Dodge the biggest laptop-buying mistakes with these handy tips

Buying a new laptop is exciting, but you need to watch your footing. There are a number of pitfalls you need to avoid and we're here to help. Check out these top-10 laptop buying mistakes and how to avoid them.
Computing

Great PC speakers don't need to break the bank. These are our favorites

Not sure which PC speakers work best with your computer? Here are the best computer speakers on the market, whether you're working with a tight budget or looking to rattle your workstation with top-of-the-line audio components.
Computing

Confused about RSS? Don't be. Here's what it is and how to use it

What is an RSS feed, anyway? This traditional method of following online news is still plenty useful. Let's take a look at what RSS means, and what advantages it has in today's busy world.
Computing

Everything you need to know about routers, modems, combos, and mesh networks

Modem vs. router: what's the difference? We explain their functions so you can better diagnose any issues prior to contacting technical support. We also talk about a few variants you'll see offered by ISPs and retailers.
Computing

Metro Exodus update brings DLSS improvements to Nvidia RTX 20-series PCs

Having issues in Metro Exodus? A February 21 update for the title recently delivered enhancements to Nvidia’s deep learning supersampling feature and other fixes for low-specced PCs. 
Computing

Limited-time sale knocks $500 off the price of the Razer Blade Pro 17

Looking for an ultra-powerful laptop for yourself or someone else? You're in for some luck. Razer is running a sale on some of its best gaming laptops, cutting down pricing on the Razer Blade 15 and the Razer Blade Pro 17. 
Emerging Tech

Engineer turns his old Apple lle into an wheeled robot, and even gives it a sword

How do you give new life to a 30-year-old computer? Software engineer Mike Kohn found a way by transforming his old Apple IIe into a wheeled robot. Check it out in all its 1980s glory.