Groupon Reportedly Turns Down $6B Google Takeover Offer
The Chicago-based localized shopping Web service turned down Google's $6 billion buyout offer after apparently deciding that its best move is to remain independent for the time being.Groupon late on Dec. 3 apparently rejected Google's massive $6 billion takeover offer. According to Bloomberg News and Chicago Breaking News, the Chicago-based localized shopping Web service believes the best way to proceed is to remain independent.
Google has been in talks for the past week to buy the local retail Website, which sends e-mails to millions of users daily offering discounts from participating providers, based on proximity to those users. Its most recent offer was reported to be just shy of $6 billion.
"This is because Expedia, Kayak and others fear Google will shut them or price them out of the market they helped cultivate. The Justice Department is looking into the deal," Boulton wrote. "With those two issues, Google doesn't need any more heat for anticompetitive practices. If it bids for Groupon now, I can't imagine the Federal Trade Commission or DOJ would take kindly to Google making another power move," Boulton wrote. Another reason why Groupon said no might be financial-perhaps it can indeed stand on its own. According to the IT news site AllThingsD, Groupon has been earning about $2 billion in yearly revenue, not $500 million that has been widely reported.