Google Makes Offer To Buy Groupon
Lastest News Headlines:
Get Breaking News First
CHICAGO (CBS) - Chicago-based Groupon could soon be part of the Google empire.
Google is confirming it has made a $6 billion offer for the e-commerce coupon website. It is likely the initial payment will be $5.3 billion, with an additional $700 million to be used as an incentive to keep current employees.
Founded by chief executive officer Andrew Mason and headquartered at 600 W. Chicago Ave. on the city’s Near North Side, Groupon sends its members daily e-mails with about 200 deals for goods and services.
CNET reports that Google usually targets tech companies for acquisition based on their technological innovations, but this is not the case with Groupon.
The technology behind a group-buying site is easy to replicate, CNET explains; there are already hundreds of Groupon clones out there.
But, CNET reports, Google is likely attracted to Groupon’s “massive sales force and how that sales force is organized.
“It’s not Google’s usual cup of tea, but it’s one of Google’s own weak spots,” CNET reported. “And on the other side of things, it’s something Groupon may not be able to maintain at such a fast clip on its own.”