Speculation is growing that internet giant Google has bought group buying powerhouse Groupon in a deal worth $US2.5 billion.
The rumoured purchase comes as the group buying scene continues to heat up both in Australia and overseas, with millions of venture capital being invested in a range of companies, including Jump On It, Spreets and Cudo, all fighting for their share of the market.
As reported by Vator News, Google purchased Groupon earlier this month in a $US2.5 billion deal according to an “unnamed insider”, but neither company was willing to confirm the transaction took place.
While rumours of a Google acquisition have been simmering since November 19, when All Things Digital reported Google and Groupon were in discussions, the new report claims a transaction has now taken place.
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Tech publications have also pointed out a conversation between Groupon chief executive Andrew Mason and Google M&A head Neeraj Arora on Twitter that took place in September. A tweet included references to “hard work”, while Arora gives a “congratulations” to Mason.
It also comes after various publications reported Yahoo and Groupon were in talks, but the group buying site rejected a deal for $US1.7 billion as too undervalued.
Groupon has been pinned as one of the fastest growing companies in the tech sector. With suspected revenues above $US50 million per month, and a valuation of over $US1 billion calculated from a round of funding earlier this year, analysts have been keenly watching to see whether the site would be snapped up.
Groupon has over 20 million customers in 29 countries, and dominates the group buying scene in the United States and Europe. The company has sparked a rush of copycats, especially in Australia, where the group buying scene now has over one dozen players.