Google is always known to do something innovative and out of the box. No matter, whether such moves have immediate effect to company’s business model or long term returns. Keeping the tradition intact, Google seems to be considering the E-Biz model very seriously and in the same row after the launch of www.boutique.com, an online fashion boutique, company’s is focusing on acquisition of E-Commerce Discount Coupons’ leader Groupon.com – A possible acquisition worth USD 3 Billion, as reported by Bloomberg.
However, Groupon Inc is still holding its card in hand. Company is weighing whether to proceed with next round of fund raising or sell itself to Google. As per people, known to this matter, Groupon management met this week to analyze the current situation and nurture the discussion further. As per the sources, Groupon is leaning towards the Google, though the company may take some until the end of the year to make final decision.
Groupon Inc, a Chicago-based startup, is dealing in the local advertising market which is worth $133 billion in U.S. Company’s success story is so impressive that, just in overall existence of 3 yrs, people started addressing it as “Next-Googl-in-making”.
Google is struggling to manage the challenges thrown by Facebook which keep on lures the web surfers by introducing new features regularly. With such acquisition Google is not only trying to plug-in a profitable & much appreciated business model, it’s also trying to regain its lost users via Groupon’s Online Discount feature incorporated with Google power search.
Groupon has been through an acquisition attempt by Yahoo earlier. Though Yahoo couldn’t shape up the whole exercise as Groupon never overwhelmed by the offer of Yahoo. Many people don’t see this deal which can reach to conclusion. Google need to be very careful and should have internal blessing from every board member as this is going to be one of the biggest acquisition by Google in near history. Besides few acquisitions, which could replicate the attraction, last major one was DoubleClick, an online advertising management company, in 2008 for which company had omitted $3.2 Billion.
Groupon’s business model is so unique and striking that Many clones have cropped up across the globe in no time. Company is having operations in 29 countries and serves to 300 markets currently. There are more than 15,000 clones of Groupons which are currently operational in various countries. In India itself, there are more than 10 clones, currently operating and making good amount from such business model. Grouopns keeps 50% avg of every deal which it clicks online.
It would be interesting to see the decision of Groupon as it can transform retailing model of Industry. With such control over the internet and web users, Google can certainly dominate & command the online retailing industry through Groupon.
Source: Bloomberg
