Report: Facebook acquires Groupon

Because a lot of billions in valuation is better than a few billions

Get out the champagne--Facebook, the social titan with a valuation of some $50 billion, has acquired Groupon, the collective-buying pioneer that was recently believed to be considering an IPO to the tune of $25 billion. Their fusion is expected to create a super Internet power--the awesomeness of which will keep users from ever leaving. 

The two companies have been in quiet talks for months--so quiet that that's why everyone's hearing about this for the first time. The acquisition is particularly surprising since rumors of a Groupon IPO have been swirling for months. But even more surprising--Groupon turned down a $6 billion buy-out offer from Google just three months ago. What gives?

"The average Facebook user spends over four hours a month on the site. That kind of engagement is rare and now Groupon will have full access to those users," said Groupon CEO Andrew Mason. He added: "And they gave us a LOT of money." He declined to state the full amount.

Facebook, of course, has also been in the spotlight recently as many speculate about a potential IPO later this year. The company recently raised more than $1.5 billion from Goldman Sachs and DST for a valuation of $50 billion, so the company clearly has all kinds of cash to be throwing around on a buying spree.

"Groupon has proven to be the number one daily deal site, and the social fabric underlying its platform, as well as its brand power, will resonate with Facebook users," said Facebook CEO and founder Mark Zuckerberg. When asked about what this means for Facebook Deals, Zuckerberg was seen to shrug and say "eh."

As part of the deal, the entire Groupon team will be moved from Chicago to Facebook's headquarters in Menlo Park. While Andrew Mason looks for a place of his own, Zuckerberg is allowing him to crash on his couch, as per the terms of the acquisition. 

And reader, you have something on your shirt. Ha, ha!