Google’s Biggest Acquisition Ever: Offers $5.3 Billion to Groupon

Must Read

LinkedIn Finally Rolls Out The Most Requested Feature By Users

Microsoft owned LinkedIn has recently been reported to have revamped its profile section with an amazing feature...

Facebook Without Mark Zuckerberg And Sheryl Sandberg?

Imagine Facebook without Mark Zuckerberg and Sheryl Sandberg, the current CEO and COO of the world's largest...

Google is Giving Microsoft a Taste of its Own Medicine

The latest version of the Microsoft Edge browser was launched about a month ago for Windows 10,...
Aarzu Khan
A full-time data scientists and a part-time industry analyst; still learning power of effective presentation and firm believer of the thought "Numbers are always magical". Love to be in the network of people who 'know' how to respect their time and keep others engaged in meaningful activities.

Just yesterday I learned about Google’s confidence in cloud computing when company has revealed its plan to launch much anticipated Chrome OS in coming December. Apparently, company is in no mood to slow down or discount its efforts in order to stay supreme in cloud computing and has offered $5.3 Billion to Groupon – A leader in online E-Commerce and E-Coupons industry – in order to dominate E-commerce business and to add another proven revenue generation model to the business, as reported by NYT.

As we had reported earlier about possible Google’s acquisition of Groupon last week, we had sensed the success of such attempt and had presented the profit & loss analysis for Google at that time. As per the sources, deal be signed by both the companies as early as sometime this week.

However, the possibility of failing the deal is also surrounding the acquisition efforts. Due to its strong revenue generation model and enormous success in just 2 years, Groupon has firm support from all its investors. Company will test the latest offer against the feasibility of new round of funding for sure.

Advertisements

But if this deal bypasses all obstacles and reaches to destiny, Google will not only get benefit from the finance stand posit but will also be having the access to huge data which talks about consumers shopping habits globally. Trust, this will be the second major achievement which Google may be eyeing besides revenue from this deal, as company knows the best how to capitalize such vital information.

Combined with its pending $700 million acquisition of ITA Software, the travel data firm; which should freak out regulators worldwide and could be considered Google’s own version of a jobs plan for antitrust lawyers. Undoubtedly, it’s a killer move by Google which will benefit the company in multiple ways.

Equally, it’s a big achievement for Groupon, a social shopping & daily deal company, which was founded just 2 years back. Compare to other acquisition Google made till day – be it Youtube, Picasa, AdMob, Feedburner and many others – Groupon acquisition is not only the biggest in recent times but also a good payout for a startup when hundreds of clone are cropping up in almost every country to kill its future growth. Currently Groupn is holding a revenue figure of 350 million with 12 million registered users majority in U.S. and Europe. Till date Google has made more than 83 successful acquisitions across the globe.

Initially, it was Yahoo who attempted to acquire the Groupon by offering $2 – $3 Billion. Unfortunately Groupon didn’t find its much lucrative to bind with it. Following to which, Google initiated the dialog with Groupon on the same line by raising the offer to $3 billion to $4 billion, as per the sources. In the presence of Groupon’s resistance Google has raised its offer which stands aprox $5.3 Billion which is unlikely to grow.

With lots of speculations and predictions, deal is not far from closing. Interesting thing is to monitor the real negotiation capabilities of Groupon management with Google when they all will sit across the table to sign. If Groupon is known for its best negotiation capabilities, Google is the among very few companies who can afford to pay such huge price. I am sure Groupon, which offers daily deal at with huge discount, will not allow the biggest ever deal to go out from their kitty.

Advertisements

3 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Music Streaming Platforms In India: Gaana And JioSaavn Account For Over 50% Market Share!

The Times owned Gaana emerged as the top music streaming platform in India. It outpaced all peers...

Apple, TikTok Hiding Something That Could Be The Cause Of Concern?

Apple and TikTok have reportedly denied testifying at a congressional hearing in March concerning their ties and relationship with China. Their move...

This E-Commerce Underdog Is Challenging Biggies Such As Amazon And Flipkart In India

The eCommerce market in India is flourishing like before. All thanks for exploded adoption of Internet and Smartphone. Amazon and Flipkart are...

Is Amazon Hand In Glove With Fraudulent Delivery Partners in India?

Amazon.com, Inc. (NASDAQ:AMZN) is a global tech behemoth largely driven by the growth of its eCommerce business. They have long boasted about...

Warren Buffett Acquires An iPhone, And It’s Huge Technological Upgrade For Him!

Yes, you read it right; Warren Buffett has acquired an iPhone, finally! One of the world's richest people on...

PayPal To Throw Their Hat In The Ring For UPI Payments Service In India

It was more than two years ago wherein Paypal, the global digital payments giant decided to launch its operations in India in...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This