Groupon Passes on Google Offer

By Richard Gibson
Dec 4 2010

Groupon, the massive daily deals website, has reported today that they are rejecting the takeover offer made by US-based Google.

This is a strange turn of events for the search engine giant who has become accustomed to getting what they want when they want it. However, Groupon has figured out that they are a very valuable web property and they are willing to make some changes that will make them even more valuable.

Inside sources have said that Groupon is eyeing a possible stock sale. However, the company said during a recent press conference that they would not set any Initial Public Offering until 2011, as analysts have suggested that a yearend stock sale would not be a financially sound move.

Groupon has been tightening their grip on the local advertising market in light of the newest moves in the industry. Amazon recently announced that they would invest $175 million in Groupon competitor LivingSocial.

At the current time, Groupon is in control of nearly 23% of the local advertising market. However, they are planning to increase that number with some new innovations to their core business model. The company announced that they would be adding new features to the site over the next three to four months, hoping to attract more users.

Google has not issued a formal statement on the declined offer as yet. Insiders have said that they will continue to look for a viable platform to increase their local advertising share.