Is Google paying $4B to get Groupon?

November 19, 2010: 10:02 AM ET

Rumors this morning are pointing to an acquisition of the coupon site by Google.

After failed attempts by Yahoo (YHOO), Groupon appears to be in negotiations to sell itself to Google (GOOGaccording to a report this morning by AllThingsD.  The deal and price aren't set but numbers north of the "$2-3 billion" that Yahoo offered are being thrown around.

Google isn't new to the neighborhood space.  Besides previously making an attempt to buy Yelp (who compete with Groupon via their local Daily Deals), Google has a litany of homegrown and purchased location-aware products around Google Places.

The social coupon site Groupon would help in Google's attempt to become more social by providing a gateway to bringing Groupon's huge userbase into Google's location-aware services.  It would also be a platform on which Google could sell its new local geo-targeted local ads against.

Google Ventures also backs a localized Foursquare/gaming company SCVNGR.

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About This Author
Seth Weintraub
Seth Weintraub

Google went from searching the Web to worming its way into nearly every facet of business and government. Seth Weintraub unveils where the company is going, who it's competing with, who it's about to compete with and how market forces push the company to veer or adhere to its Don't Be Evil motto. For 15 years, Weintraub was a global IT director for a number of companies before becoming a blogger.

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