Google and Groupon: Social buying gains momentum

In the wake of the speculation that Google is to buy Groupon, the website that specializes in "social buying" and online coupons, this brief article analyzes why Google would choose to pay $6 billion for the company.

Google and Groupon: Social-buying gains momentum


The Internet has been buzzing this week over speculation that Google is about to buy Groupon, which is a Chicago-based Web site that specializes in "social-buying" and online coupons. The potential Groupon deal has been estimated at $6 billion, which would make it Google's largest acquisition to-date behind Doubleclick (2007, $3.1b) and YouTube (2006, $1.65b).


Groupon's success is often attributed to a very simple but highly-relevant consumer experience. Groupon essentially sends its users a daily promotion/coupon from a local business who is willing to pay more than other companies in order to...

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