Groupon’s business model is what Google will be cashing in on. Groupon works like a massive advertising network with discounts enticing people to visit affiliate sites. It has about 20 million subscribers in about 29 countries which would give a diverse audience for Google to market its products to.
Google to Buy Groupon for $2.5 Billion
Today UK’s Guardian reported that Google is buying the coupon and discounts website Groupon for about $2.5 billion which makes it one of the most expensive deal this year. Google nor Groupon have not confirmed the deal yet. Yahoo earlier this year attempted to buy Groupon for a bid that ranged from $2 to $4 billion.
Groupon’s deal with Yahoo fell through the cracks and Groupon settled with Google by taking in less than what Yahoo was offering. Groupon was worth $1.3 billion earlier this year. It also had a revenue stream of about $50 million per month.