E-commerce coupon site Groupon — a "deal-of-the-day" website which uses mass purchasing power to negotiate steep discounts for its customers — is reportedly considering selling itself to Google. If the two companies come to terms, the deal could be the internet search giants' biggest acquisition ever. But regulators might frown on any effort to combine Google's reach with Groupon's power. Will Google get its money's worth? (Watch a Fox Business report about the rumored deal)
Yes, Groupon is a gold mine for Google: "Google has cash coming out of its ears," says Henry Blodget at Business Insider, and that money — $30 billion or so — "is currently doing the company no good whatsoever." Google should spend it on Groupon and other big businesses, such as Twitter, that are "complementary to Google's core business." Pairing Groupon deals with search results is an instant ticket to bigger profits.
"Hell, yes, Google should buy Groupon. And Twitter. And Foursquare..."
Google might regret it: Groupon offers Google a way to lock down local retail markets, says Larry Dignan at ZDNet, but that's such a tempting prospect that Google is liable to wind up overpaying. "The big question is whether regulators would allow Google to buy Groupon." Everything Google does is "scrutinized," and this deal would give Google and Groupon customers so much collective buying power that regulators might just say no.
"Google and Groupon: A heavenly local commerce match that would raise eyebrows"
It's a great idea for Google — but Groupon should wait: Sure, this deal would let Groupon's shareholders cash out, says Owen Thomas at VentureBeat, but the company's concept — giving consumers collective buying power, while giving small businesses a way to reach new customers — is no "fad." It's the future of retailing, which means Groupon will only get more valuable.
"Groupon needs the human touch, not Google’s robots"
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- Why Mitt Romney is perfectly poised for a comeback in 2016
- Why is the West so afraid of Islam?
- The Nazi smart bomb that inspired China's most dangerous weapon
- Why GOP reformers are bound to fail
- The best places to find love — and lust — according to science
- 10 things you need to know today: July 31, 2014
- What would a U.S.-Russia war look like?
- Here's the schedule very successful people follow every day
- The mystery behind China's aggressive push into space
- Don't vote for Andrew Cuomo
Subscribe to the Week