A deal between search giant Google, and feisty coupon start-up Groupon has been rumored for weeks now. But the rumors have now seemingly coalesced around a finalized Google acquisition of Groupon for a whopping $2.5 billion, according to VatorNews. The price seems to be in line with the approximate value of the company. Goupon has been preparing to raise funds that would have valued it at nearly $3 billion. Being acquired by Google would be an easy and automatic payday.
Groupon has gained notoriety as a social coupon service. Users pick the “Groupons” from the site that they would like to use. These are often deals provided directly by local businesses. The discounts are usually steep, but are only available for a limited time. Groupon encourages users to share Groupons they like with friends. This jives with Google’s movement towards social everywhere, as opposed to a single social hub like Facebook.
Both Yahoo and eBay have also been courting Groupon, so Google may have been willing to pay a premium in the acquisition. Neither company has discussed the reports, but we’ll probably know more soon.