Shares of online deal site Groupon dipped to a record low after the company reported second quarter revenue with mixed results. In reaction to the numbers, investors responded by sending Groupon's stock price down 15 percent in after hours trading. Groupon's stock is currently trading at $5.56, down more than 26 percent compared its closing price of $7.55 on Monday.
Back in 2010, Google made Groupon an offer it was able to refuse. The sultan of search reportedly was willing to pay $5 billion for the online coupon site, and all Groupon's founders had to do was sign the paperwork, cash out, and laugh all the way to the bank. Imagine the audacity of rejecting a multi-billion dollar offer, because that's exactly what Groupon did and you know what? It may have been the right move.
The Internet holds fantastic promise. You can travel the virtual world from your desktop, harness the power of distributed computing projects to better humanity, and research any topic out there. But mostly we like to wring the Internet for awesome deals and save a bunch of money. Plenty of so-called deal sites exist to help with this mission, but are they delivering on their promise?
Hot on the heels of the successful LinkedIn IPO, Groupon has filed its S-1 paperwork with the government to have a public offering of its own. The online purveyor of deals is looking to raise $750 million. Can Groupon’s 83 million subscribers get it the cash it needs? Its profits certainly won’t.
You might already be familiar with Facebook's Check-In Deals, a service the social networking site launched a few months back and designed to help users take advantage of special offers when checking in at a local business from a mobile device. Deals on Facebook is different. This newly launched service is more akin to what Groupon is doing, in that it serves up discounts to select establishments that you purchase online and redeem offline.
The more we hear about Living Social's meteoric rise, the more we think Groupon should have taken that Google buyout offer. In the process of acquiring a company called SocialMedia, Living Social disclosed some financial data to value the shares they were handing over in the deal. According to the disclosure, Living Social is valued at $2.9 billion, and sees $50 million in monthly revenue.
Bloomberg is reporting that Groupon is now printing money. By which we mean, the company is mulling an IPO valued at a whopping $25 billion. Groupon has only been in operation for two years, but already banks are reportedly unlikely to assign a value less than $15 billion, and the higher number Groupon is gunning for is a real possibility. Who'd have thought coupons were so big?
A month after group buying site Groupon turned down a $6 billion takeover offer from internet giant Google, the latter confirmed plans of invading the online deals space in a statement sent to Mashable, which published a confidential fact sheet about a new service called Google Offers on late Thursday.
This is what the company said: “Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program. This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways. We do not have more details to share at this time, but will keep you posted.”
True, Groupon is inured to seeing new clones everyday, but a rival with the size and reach of Google will pose a completely different challenge. Already a master of the online advertising game, Google is now focusing on local advertising. Looks like both the companies have a battle on their hands.
A deal between search giant Google, and feisty coupon start-up Groupon has been rumored for weeks now. But the rumors have now seemingly coalesced around a finalized Google acquisition of Groupon for a whopping $2.5 billion, according to VatorNews. The price seems to be in line with the approximate value of the company. Goupon has been preparing to raise funds that would have valued it at nearly $3 billion. Being acquired by Google would be an easy and automatic payday.
Groupon has gained notoriety as a social coupon service. Users pick the "Groupons" from the site that they would like to use. These are often deals provided directly by local businesses. The discounts are usually steep, but are only available for a limited time. Groupon encourages users to share Groupons they like with friends. This jives with Google's movement towards social everywhere, as opposed to a single social hub like Facebook.
Both Yahoo and eBay have also been courting Groupon, so Google may have been willing to pay a premium in the acquisition. Neither company has discussed the reports, but we'll probably know more soon.