Groupon? What do I know about it, not much for I don’t use it and haven’t heard of it until recently when I saw my friend using it. I have ventured to the site to look at it. I found that the site is for group buying of a certain deal and the deal changes on a regular basis to different types and different stores. As said in an article by Kara Swisher, GROUPON founded in 2008 has taken off like a roman candle and is dominating the vast market for social shopping. Groupon’s fast-growing revenue and profitability makes it much less discouraging. In my opinion Google should be lucky enough to purchase Groupon, I think it is a very good idea for Google to acquire the company while it is still young.
Google has offered $6 billion to acquire Groupon, and I thought that it was a sure deal it would go through. But while writing this blog, I came across an article that has stated that Groupon has turned down the offer from Google. Eric Savitz wrote the article. Mr. Savitz says that he is speechless, to how Groupon has turned down the offer of $6 billion, I repeat $6 billion. In his same article Mr. Savitz says that Groupon could turn into a monstrous stand-alone business, and that could be one of the many reasons Groupon has turned down the offer of $6 billion.
Groupon, saves people money, brings revenues to businesses, and also to themselves, no one really loses in the type of deals Groupon brings to the table. Groupon provides exposure to a lot of places that out of towners and sometimes even locals would have no idea these places existed. I would like to see Google acquire Groupon, just because in my opinion Google will make it so much better in the long run.
In my opinion Google should of offered more than $6 billion, even though it is more than enough for such a young company like Groupon, which averages $50 million in revenue every month. Groupon would've probably taken Google's offer under serious consideration, even though as of late the deal could still go through if both parties resolve their issues. In addition Groupon probably turned them down just to get publicity, cause right now it is in the news more than normal, and people are talking.
I hadn't heard about Groupon until recently either. I decided to sign up for it today. So far, not impressed with the deal of the day. Hopefully there are better ones to come in the future. As, for Google's offer, I think it was kind of insane not to jump on it. I mean when you're talking about billions its kind of hard to day no, but I guess they have their own plans for the future. Can't wait to see where they're headed.
ReplyDeleteI also can't believe Groupon didn't sell out to Google. $6 billion is ALOT of money. There is no guarantee that Groupon will remain the top dog in this field as more competitors are being formed in hopes of taking a chunk out of Groupon's profits. If Groupon is to fail one day in the future, it's owners can look back and lament and passing on Google's offer.
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