November 19, 2010 | by Michael Heller
Google may be getting heat over their recent spending spree, including acquisitions of ITA Software and AdMob, but they aren’t letting it slow them down. Sources close to CNet are now saying that Google is looking to buy Groupon, a local deal website.
Groupon has shown amazing potential in its short history. The site was launched in November 2008. In April of this year, Groupon garnered a valuation of $1 billion through venture capital investments. And, just last month, a deal fell through which reportedly had Yahoo offering between 2 and 3 billion dollars for the company.
If this report does turn out to be true, Google will surely shock some people with whatever number is alongside their payment offer. Luckily, Google does have a track record of seeing value. In 2007, they shocked the industry by paying $1.65 billion for YouTube, but only 2 months later, people were asking if that company was actually worth closer to $5 billion.
Groupon could be a huge addition to Google’s push to add more and more value to local search results, especially since their plan to buy Yelp fell through. But, an acquisition of this size will surely add more fuel to the Google anti-trust fire.