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Inside sources are reporting that the group buying site has turned down Google $6B offer
The latest word on the street about the love affair that never was is that Groupon has turned down Google’s $6 billion offer. The news comes from sources close to the matter, who spoke to Chicago Breaking Business. Bloomberg has also confirmed with sources that Groupon has turned down the offer and will consider an IPO next year.
The leaked info follows a week of wild speculation about what could have been the largest acquisition in Google’s history.
Reports of Google’s interest in Groupon first came to light in mid-November, when rumors began circulating that the search giant was gearing up to get into the social buying space—a new foray for Google. Things began heating up after Thanksgiving when sources close to the deal told VatorNews that Google had agreed to purchase Groupon for $2.5 billion, a report that neither company would comment on.
Several publications reported that sources had confirmed that Google had made an offer of some $6 billion, but as it turns out, Groupon’s revenues are far exceeding what anyone could have imagined. Sources close to Groupon informed Kara Swisher of All Things D that Groupon expects to see a whopping $2 billion in revenues this year, which does, admittedly, make Google’s offer look silly by comparison. Most estimates put Groupon’s annueal revenues in the area of $600 million.
So now where does that leave everybody? Well, it leaves Groupon to face the new LivingSocial/Amazon monster all by its lonesome. On Thursday, LivingSocial announced that it had received a $175 million investment from Amazon, along with an additional $8 million from LightSpeed Venture Partners.
The report comes two days after Groupon CEO Andrew Mason sent a cryptic tweet saying: “Damn… a Nopuorg acquisition could really shake up the industry.” The tweet linked to a blog on the Groupon’s alter-ego website, Nopuorg.com (get it, “Groupon” spelled backward?). In the blog, Andrew Mason doppelganger Mason Andrew blogged, “Nopuorg has not…is not…and WILL NEVER sell out.” Sage words indeed.
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