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Amazing: Groupon Rejects Google Mega-Offer
Groupon has apparently rejected the $5 billion-plus takeover bid by Google, electing to remain independent and probably go public later. AllThingsD is independently reporting that Groupon’s revenues are actually closer to $2 billion than the $500 million previously estimated.
I was told several months ago by Groupon President Rob Solomon that the company was on track for $400 million this year; so revenues must have really accelerated.
It’s a remarkable thing that Groupon’s board said no to what would have been the largest acquisition in Google’s history. However if the $2 billion revenue figure is correct then they may have felt the offer undervalued the company.
Groupon hasn’t said anything publicly about an IPO but that now looks like the only potential exit that will deliver the kind of return Groupon’s investors are apparently looking for. It’s a gutsy move that must also reflect concern that Google ownership would dilute or stall the company’s efforts and momentum.