December 3, 2010 | by Michael Heller
The rumors have been rumbling around that Google has been looking into buying Groupon, but now it looks like Groupon isn’t for sale. At least, not to Google.
Mashable is now reporting that Groupon has rejected a $6 billion offer from Google. Reportedly, Groupon’s board of directors, including the three co-founders CEO Andrew Mason, Eric Lefkofsky and Brad Keywell, met on Wednesday to discuss the offer and the fate of the company.
The overall consensus in the industry was that Groupon would accept Google’s offer, although not all agreed as to if it would be a valuable acquisition for Google. I thought Groupon could be a valuable asset in Google’s push for better local results, and as a competitor to the emerging “deals” offered through checkin services like Facebook, Yelp, and Foursquare. Others, like Jeff Jarvis of BuzzMachine thought that Groupon is a fad, a bubble that would pop and Google wouldn’t see the value from it.
Recently, AllThingsD said that Groupon may have annual earnings of $2 billion, rather than the $500 million that has been widely reported. If that’s true, it certainly explains why Google’s offer would be so high, as well as why Groupon thought the offer wasn’t enough. I guess time will have to tell if this was a loss for Google or a blessing in disguise.