Talks between Google (GOOG) and Groupon have ended, All Things Digital reports, derailing what...


Talks between Google (GOOG) and Groupon have ended, All Things Digital reports, derailing what would have been a huge $6B acquisition. The social-buying site apparently wants to go it alone and will now begin a new funding round (and keep options for a future IPO open).
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Comments (9)
  • richrf
    , contributor
    Comments (28) | Send Message
     
    Where can I line up to invest in a company that sends out 50% off coupons to an email list? It is the only business model that I know of where the client (the merchant) is asked to take a huge haircut on every transaction and where more is worse. Have you noticed that the deals are getting worse by the day. How many manicures does one need?
    3 Dec 2010, 09:43 PM Reply Like
  • Mobile Guru
    , contributor
    Comments (159) | Send Message
     
    Amazing they could walk away from that type of money. Not sure what they think they will get down the road but I doubt it is ever this good again.
    3 Dec 2010, 11:36 PM Reply Like
  • Kay0521
    , contributor
    Comments (3) | Send Message
     
    wow! its getting really crazy? for a business model that can crash in a minute. Coupon is great, our excesses will destroy this business once the economy rebound, these guys let a good one slip away.
    4 Dec 2010, 02:08 AM Reply Like
  • Jake Huneycutt
    , contributor
    Comments (1419) | Send Message
     
    I know nothing about Groupon's cash flows, but just on the face of it, I can't see any reason whatsoever that Google couldn't mimic what Groupon does and do it better ... for much less than $6 billion!!! I mean ... really ... what are the barriers to entry here?

     

    This might be a blessing in disguise for Google and end up being a huge lost opportunity for the owners of Groupon.
    4 Dec 2010, 02:53 AM Reply Like
  • Jeff Pierce
    , contributor
    Comments (939) | Send Message
     
    I would have taken the money and been sitting on a beach earning 10% by now
    4 Dec 2010, 06:23 AM Reply Like
  • Mobile Guru
    , contributor
    Comments (159) | Send Message
     
    Me to. See my latest blog on the subject.
    4 Dec 2010, 11:37 AM Reply Like
  • Duude
    , contributor
    Comments (3405) | Send Message
     
    If Groupon was actually offered anything close to the reported $6B, Yahoo ought to feel some relief. Yahoo's relief would be from having an assurance that they were nudged down one spot on the list of companies that made the biggest blunder regarding mergers and acquisitions.

     

    List
    1) Groupon refuses $6 billion acquisition offer from Google.
    2) Broadcast.com - acquired by Yahoo! in 1999 for $5 billion.
    3)AOL merged with TimeWarner in 2000.
    4) Yahoo refuses $33 share offer from Microsoft.
    5)Excite - acquired by @Home in 1999 for $6.7 billion.
    6)GeoCities - acquired by Yahoo! in 1999 for $3.56 billion.
    7) Netscape - acquired by AOL in 1998 for $4.2 billion.
    8) Lycos - acquired by Terra Networks for $4.6 billion in 2000
    9) BlueMountain.com - acquired by Excite@Home in 1999. $780 million for an online greeting card site.
    10)Skype - acquired by eBay in September 2005 for $2.6 billion.

     

    Isn't it amazing how some companies keep making crappy decisions?
    4 Dec 2010, 01:21 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Google got really lucky in that Groupon insiders are excessively greedy.

     

    But the fact that Google is willing to pay $6 billion for it should give many shareholders pause.
    4 Dec 2010, 05:35 PM Reply Like
  • Jeff Pierce
    , contributor
    Comments (939) | Send Message
     
    1 comment...no bio...shares a link...most likely spam.
    5 Dec 2010, 04:48 AM Reply Like
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