Could Google Still End Up Purchasing Groupon?

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News Posted: Fri, Dec 10 2010 10:47 AM
If you owned a deal-of-the-day website, how hard would it be to turn down a $6 billion buyout offer from Google? Probably really difficult, but Groupon didn't bat an eye when it told Google to take a hike. That's hard to fathom. According to reports, each board member would have received millions, if not hundreds of millions by signing on the dotted line. And what about Groupon co-founders Brady Keywell and Eric Lefkofsky? They would have cashed out with $600 million (Keywell) and $1.8 billion (Lefkosfky). So how on earth did they manage to turn down the offer?

Maybe they didn't. According to a report in Business Insider, Google's Marissa Mayer hinted that the deal may not have been nixed, but in need of more time (a strategy). Speaking at the Le Web conference in Paris, Mayer said that "the larger the company, the more complicated the deal is," and the more time it will take.

It wasn't that Groupon's board wanted to turn down the deal, but they felt forced to do so because of regulatory concerns, BI says. Google is already involved in two separate antitrust investigations, and many believe that a $6 billion buyout of Groupon would have put a regulatory microscope on the company like never before. In a worst case scenario, months could go by before Groupon's board would receive word that the deal was being blocked.

The issue, then, came down to wanting a break-up fee if the board was to accept Google's offer, and that's where the deal ultimately fell through, at least for now. Google offered DoubleClick a $700 million kill fee should things go south when it acquired the company for $750 million, and BI says Groupon wanted the same type of protection. It's unclear just how much Groupon requested, but whatever the number, it was Google, not Groupon, that ultimately said no.

Even though the deal didn't go through, Groupon still benefited. The botched deal gave the company tons of exposure, which reportedly added 4 million email subscribers last week alone.
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My real name is on the second picture. *on topic* another thing is that google is just weird like this. if i had the money for buying it I would've went Through with it.

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rapid1 replied on Sat, Dec 11 2010 11:25 AM

It is also interesting specifically as a small operation. Think about it this way you already have a ton of subscribers, and your company has been covered in magazines, and on the news several times.

So if the largest player bar none in a market, which is also the internet, and is now also the largest singular market in the world, but with tons of growth potential left came to buy you out would it be worth it really?

Yes; I am sure your saying I am nuts, but look at the big picture. If the largest player is willing to offer billions for your business, then it also feels that it is worth it. So what is it worth to you? To add to that this may also be a play for more money as well which they will most likely get. What would have happened if say Facebook or a company like them that is still successful sold out back in the day when they could have? Just look at Myspace which was bigger than Facebook at one time, and sold out to Rupert Murdock I think it was.

I know they got millions, but if the business is also your baby, then you at least want the largest payoff you can get, if you can bring yourself to let it go.

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realneil replied on Sat, Dec 11 2010 1:23 PM

My real name is on the second picture.

Legal Tender? Big Smile

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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