Well, apparently we spoke too soon. Last week, S2EO broke news of a potential deal between Groupon and Google. According to rumors, Google had acquired the start-up for $2.5 billion. However, new reports indicate that Groupon rejected the offer, which was actually somewhere between $5 billion to $6 billion.
As of yet, neither party has commented on the deal, but there is much speculation as to why Groupon would reject such an offer at this time. For one thing, Groupon, at least for now, can certainly afford to wait. The start-up is one of the fastest growing companies ever. In fact, the company stands to bring in a whopping $2 billion in sales this year, according to the All Things Digital blog.
Another huge factor is company culture. Many of the Groupon writers and sales staff have backgrounds in improv comedy, and the company in general is known for its off-beat sense of humor. It is quite possible that the company just did not want to be absorbed by a larger corporation so early on.
Of course, a big question with Groupon is whether the business is sustainable. Start-ups tend to face pressure from investors to either go public or get acquired, so it will be interesting to see what the company does moving forward.
What do you think? Should Groupon have accepted the offer? Let us know in the comments below.
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