What Google Could Do With Groupon

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    NEWSLETTERS

    Groupon could get swallowed up by Google.

    Last week the number was $4.2 billion. This week the number was down to $2.5 billion, but now it's up again ... to $6 billion.

    Regardless of what the final number is, or if there even is one, the blog mill is churning with word that Google is hot after group-buying coupon service Groupon.

    But why would Google want to spent more than it did on YouTube to own a coupon service? Because some analysts believe the combination could be powerful.

    Unlike YouTube, Google wouldn't have to wait to develop a revenue model with Groupon. The Chicago-based company is already generating more than $50 million a month in revenue. It also has been valued at over $1 billion.

    Together, Google could beef up its Google Places service, which is already going head-to-head with another company once thought to be the Apple of the search engine's eye, Yelp.

    By adding Groupon's discount power to Google's directory of local businesses, Groupon could add customers it may not be able to access now while Google would be able to offer its customers a service other location based sites cannot offer.

    Groupon is also famous for doing one thing that Google has notoriously struggled with: 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 if the Google rumors turn out to just be that.