Posted November 19, 2010 3:53 pm by with 4 comments

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Well, this will be a nice way to tidy up the week by adding to the rumor mill that has Google actively looking to purchase Groupon. Yup, that’s right. There is some rumor mill fodder to consider but from the heavy hitters like Kara Swisher at AllThingsDigital’s BoomTown as she reports

According to multiple sources close to the situation, Google is in discussions with local deals powerhouse Groupon about buying it.

Without making the requisite joke about the deal of the day, sources said the price being considered is certainly no discount–well above the $2 billion to $3 billion that Yahoo offered Groupon in acquisition talks that took place earlier this year.

But sources cautioned that the talks are not complete, and could also end up without any result, as the Yahoo discussions did.

So yes it is a rumor but a pretty compelling one. Not to be left out, Henry Blodget feels that Google needs to spend some of that mountain of cash they have in Mountain View.

Google is in talks to buy Groupon for more than $3 billion, Kara Swisher reports.


Google offered $2.5-$4 billion to buy Twitter a few months ago, Nicholas Carlson reports.

Also good.

Google’s Marissa Mayer is obsessed with Foursquare and is probably considering buying it.

Also good.

Google should buy all these leading companies–and more.

Here’s why:

Google has cash coming out of its ears, and the cash is currently doing the company no good whatsoever.

Pretty straightforward, huh? Whether or not any of this comes to fruition, it is starting to look more and more like Google may have had enough of developing Wave after Wave (pun obviously intended) of failed social / collaboration / whatever it is they were trying to do offerings.

Google needs to be in the social space. They need to maintain the relevancy of search as we know it or at least gracefully evolve moving forward. These things take some nuance and some more than just whiz bang engineering. It takes a soul, which Google sometimes seems to lack because it comes off as very robotic and almost stuffy at times.

I think it would be great if they bought a big name in the social space. It would give us all something to blabber about for a few days. What would be more interesting is what that purchase looks a year from the time it is bought. You can buy a small niche player like they often do and let it assimilate into the Goog without much trouble. Most people didn’t know that the companies they purchase even existed anyway.

But take a high flyer with a growing brand like Groupon or fourssquare and then see if they smother it like Lennie did to critters in “Of Mice and Men” or if they let it grow and then figure out how to integrate rather than assimilate it into the existing Google ecosystem.

All in all, it would be interesting to see Google try to buy its way into the social world. I think it’s the only way they can succeed because being social isn’t the strong suit of most engineers.

  • Groupon recently called my wife’s company (which is a cakes and confections company) to talk to her about running a special. We live in Topeka, Kansas, which is not a huge market, but they are on the phone making calls to our area. They are certainly trying hard, and reaching many markets, which is a good way to become an acquisition target. I just never imagined they were valued so high.

    Some people say the economy is down, but when companies like Groupon and Twitter are being valued at $3 billion, it seems more like a big rumor than the truth. Either that, or somebody with way too much surplus money bumped their head really hard.

  • I love Groupon and I love Google, good and good. 99% of products under the Google umbrella seem to be improved and loved by many, including me. But I have to agree that the amounts make this seem more like a rumor than anything else. Either way I’ll hope for the best and continue to enjoy both sites.

  • Easy way to further tap into the local search market. Groupon and GADW reps could cross-sell – instead of offering $50-$75 free, they could offer a free Groupon promotion to sign up for GADW. Or as part of the Groupon of the day, free clicks for the day.

  • Adam L.

    The fact that you would mention Henry Blodgett’s name, specifically in connection to Yahoo ,is a black mark to your otherwise respected publication. He is a maggot, scumbag, liar, and thief. Certainly you have more respect for ‘Marketing Pilgrim’ than that?