Google’s $6 Billion Bid

204

Google is willing to pay around $6 billion for e-commerce coupon web site Groupon per media sources. The first payment will be 5.3 billion, and 700 million will be used as incentive to keep current employees according to AllThingsD.

This offer comes as it’s rumored that Yahoo would offer $3 billion to $4 billion to purchase the company. It turned out that the two companies paired up as partners for Yahoo Local, details have not been specified.

The social shopping network is two years old, revenue is about $600 million. Industry experts feel that figure will grow.

Groupon’s revenue is from offering members big discounts from retailers. Retailers get lots of traffic for their inventory.

Groupon is located at Groupon.com that is localized to many major markets in both the United States and Canada. Originally, it launched in November 2008. Groupon first arrived in Chicago, Illinois. It was off to Boston, New York City and Toronto. As of October 2010, Groupon now serves more than 150 markets in North America as well as 100 markets in Europe, Asia and South America.

Groupon is reportedly thinking about Google’s offer.