Should Google buy Groupon?

Google might spend billions to acquire the "deal-of-the-day" coupon site Groupon — but some analysts aren't sure the purchase makes sense

Groupon is a private, Chicago-based company that launched two years ago.
(Image credit: Groupon.com)

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.

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