Groupon May be the One That Got Away From Google - NBC Bay Area

Groupon May be the One That Got Away From Google



    Groupon May be the One That Got Away From Google
    Google and Groupon was not a match made in heaven.

    2010 was the year of buying companies for Google. But the tech giant might remember the year more for the company that got away than the 10 it swallowed up.

    Reports had Google pushing to take over Chicago-based group coupon site Groupon in a deal rumored to be upwards of $6 billion.

    But the lack of a financial guarantee in case the take over was killed by the U.S. Justice Department reportedly killed the deal. Groupon was reportedly asking for something Google had offered a previous company it went after.

    The search giant reportedly gave AdMob a $700 million kill fee last fall and Google bought that company for about $750 million.

    Some thought Groupon was crazy to walk away from Google but shortly after trekking its own course, the startup filed an updated Certificate of Incorporation that authorized a Series G funding round up to $950 million.

    Two weeks later, Groupon has already hit the $950 million mark. A list of who's who in the Silicon Valley world of investors beefed up Groupon's value by investing in the company.

    The appeal of the site for investors -- and Google -- is Groupon's ability to sell to the little guys. By convincing local companies to offer discounts on its products, Groupon is able to direct sell ads for companies that otherwise wouldn't invest in the Internet.

    The ability to raise the nearly $1 billion, and so quickly, is sure to calm some investors' nerves who were weary of the company walking away from Google's billions.