WSJ: Google to offer $5.3B for Groupon
By Dow Jones Newswires-Wall Street Journal
Posted today at 5:52 a.m.
From WSJ’s All Things Digital | According to sources close to the situation, Google has offered $5.3 billion for Groupon, in what will be its largest acquisition yet if completed. Sources said the deal for the social buying site seemed likely to be struck, even as early as today, although it certainly could fall apart right up to the end.
But, if done, it will move the search giant instantly to the top spot in local commerce online and give it huge troves of data about consumer buying habits and merchant information across the globe.
Combined with its pending $700 million acquisition of ITA Software, the travel data firm, that should freak out regulators worldwide and could be considered Google’s own version of a jobs plan for antitrust lawyers.
That said, it is a killer move for Google, given it has long tried to enter he local space, with mixed results.
In contrast, Groupon, founded only years ago, has taken off like a Roman candle and dominated the huge market for social shopping and discounting.
In what will certainly be one of the deal’s ironies, Google could own a start-up, which is largely powered by the Facebook’s massive skein of social networking connections.
BoomTown first wrote about the deal discussions between Groupon and Google three weeks ago, noting the price would be well above the $2 billion to $3 billion offered by Yahoo, which was first to sniff around the fast-growing social buying site.
The New York Times–who does not seem able to ever credit as All Things Digital and other blogs always do happily and without fuss–is also reporting a $6 billion price tag for Groupon.
chicagobreakingbusiness.com |
