Google Expected To Bid $5.3 Billion On Groupon
Swisher’s contacts have confirmed that the deal could be done by the end of the day although nothing is set in stone until the ink has dried on the dotted lines.
At $5.3 billion, Groupon’s purchase would be worth more than Doubleclick and Youtube combined and unlike the latter would bring in significant revenue from day one.
Google is Groupon’s main traffic provider but ironically, Facebook which already has its own Facebook Deals service, does account for around 10 per cent of Groupon’s traffic.
That said, while Groupon’s current situation allows it to command a huge premium should the acquisition go through, some have questioned whether Google wouldn’t just be better off investing the money in its own local based services and reaping the benefits in the long run.
We do however believe that it does make sense for Google to buy Groupon because it would give them a huge lead in location based services ahead of Yahoo or Facebook.