Google May Acquire Groupon for $6 Billion, and It Would Be Worth Every Penny
Forget the rumor that Google acquired Groupon for $2.5 billion; the search giant is about to close a deal for the group-buying service for a whopping $5.3 to $6 billion, according to multiple reports.
It would be worth every overpriced penny.
The deal is worth $5.3 billion with an additional $700 million earnout based on performance, according to All Things D. The New York Times reports that a deal could be completed as soon as this week. With a price tag almost double that of DoubleClick, Google’s (
) biggest acquisition to date, there are still plenty of ways for this deal to fall apart.
) biggest acquisition to date, there are still plenty of ways for this deal to fall apart.Earlier this year, Yahoo tried to snag the group-buying company, but failed. Google, with its $30+ billion cash reserve, reportedly then offered Groupon $3 billion to $4 billion. However, it was rebuffed, so the tech giant upped its offer.
Groupon pioneered the group-buying model through its deal-of-the-day business model. Launched in November 2008, the company has grown from an offshoot of ThePoint to a multi-billion dollar empire with thousands of employees worldwide. In April 2010, Groupon raised $135 million from Digital Sky Technologies, setting its value at over $1 billion.
If the Google deal does go through at a $6 billion valuation, that would mean that Groupon’s value has grown by more than $625 million per month or over $20.8 million per day. That skyrocketing value is simply mindboggling.
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