Google close to deal with Groupon
Just weeks after launching a new website geared toward online shoppers, Google is near making another huge move. The search engine giant is getting close to buying Groupon, a popular deal-of-the-day website, in one of the company's largest deals to date, The New York Times reports.
Those close to the situation have said that Google has offered to buy the website for between $5 and $6 billion, which would make it significantly larger than the much-ballyhooed $3.1 billion deal between Google and DoubleClick in 2007. Though talks could fall through in the coming days, it is believed that the deal will be closed by the end of the week.
The deal would be the latest effort by Google to establish a growing presence in the online advertising market. They recently tapped Marissa Mayer to head local business advertising and lead the charge to buy popular reviewing website Yelp.
Groupon was founded in 2008 and operates by offering users a certain discount each day, depending on their location and specific interests. If a large enough number of people sign up for the coupon, it can be used. However, if too few take advantage of the offer, the discount is pulled completely.
The company has grown considerably over the last two years, and has expanded to large merchandisers such as Gap. It currently has around 12 million registered users and has brought in more than $350 million, according to the Times.
The reports of Google's large offer comes just a month after Groupon rejected a bid by Yahoo, which offered to pay $2 billion for the website. Additionally, it was reported that Google originally made an offer in the $3 to $4 billion range, but upped it to its current figures when Groupon resisted the deal.