Groupon Rejects $6 Billion Google Offer

Published by: Geno on 4th Dec 2010 | View all blogs by Geno

Groupon Rejects $6 Billion Google Offer

After all the rumors, it appears the Chicago-based Groupon Inc will pass on Google's $6 Billion offer. It is said that Groupon is still flirting with an initial public offering, but will not make an announcement until 2011.

In two years, Groupon went from being a struggling website (within 8 months it was profitable) to now employing over 3,000 workers with a presence in 35 countries. Expected annual revenues are estimated at $500 million.

Google, who continues to delve into local search advertising, finds Groupon appealing due to their network of sales people and their established relationships with small businesses around the globe.

How does Groupon make their money? By offering irresistible discounts for local businesses, with bonus discounts if a minimum number of people sign up for the offer. Groupon receives 50% of that revenue.

In the meantime, while all the Google acquisition talks circulated, Groupon continued to make deals with Ebay, Yahoo, they bought a California-based tech company and even acquired three Asian daily deal websites. In addition to all that, Groupon will be expanding its reach in Chicago after receiving a $3.5 million job creation incentive package from the state of Illinois.

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