Google Looking to Subscribe to Groupon Rival: Report

By Sajid Farooq
|  Tuesday, Dec 21, 2010  |  Updated 4:20 PM PDT
View Comments (
)
|
Email
|
Print
Watch as the <a title=Groupon boss dodges questions." />

Watch as the Groupon boss dodges questions.

advertisement

Sometimes messing with a questionable monopoly gets the little guy run out of town.

For all its early success, Groupon is still a relatively small player in the tech world. The Internet has reached an age where companies such as Microsoft are dinosaurs and the likes of Google look like the old kids on the block looking to learn tricks from the new dogs.

Groupon is just one of those new dogs. One of the few privately held startups that actually has a revenue model that is working now and doesn't rely on a major player like Google to come in and swoop it up to be profitable.

Such a scenario almost played out and the group-buying coupon site shunned the search giants advances. Even after Google reportedly dangled a $6 billion carat that would make the likes of even Beyonce sing a different tune.

Reportedly shunned by its crush, Google is now looking to move forward. Reports say the tech giant is looking to purchase one of Groupon's much smaller rivals.

In the past the move has worked well for Google. Who has been turned away by previous love interests, including Yelp.

But Google has always had enough money and power to be able to turn that pain into motivation to create its own product and go after the very company who turned it away.

But would one of Groupon rival be as useful to Google? Perhaps not.

Some analysts have suggested that Google was interested in the Chicago-based company because it would fill a void the company has notoriously struggled with for years: direct sales. The coupon site has a team of sales people who are well connected and able to strike up deals on short notice.

Some question whether Groupon will be able to sustain its fast paced sales environment but others point to it as the reason the company will be just fine.

Groupon is already generating more than $1 billion in annual revenue and in two short years it has expanding its force to 3,100 employees and 35 million users in 300 markets.

It's next closest competitor has about 10 million subscribers in 120 markets. If anyone could close the gap, it would be Google, but does the Mountain View-based company want to undertake the project?

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
Bay Area Proud
Bay Area Proud is NBC Bay... Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out