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.

Related Topics: Channel: Industry | Google: Acquisitions | Top News

Sponsored


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn



SearchCap:

Get all the top search stories emailed daily!  

Share

Other ways to share:
 

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.
  • http://www.bizlistme.com BizListMe

    Wow, I really thought the deal was gonna go through!

  • http://screenwerk.com Greg Sterling

    Yep. So did most people. We’ll see if they later regret it, although we don’t know all the fact/deal terms.

Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!

 


 

Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide