So Groupon turned down a five billion dollar deal with Google, and I think this is the biggest mistake a company has ever made. Groupon seems to have this belief that they will take their company public and make lots of money, and continue to thrive, but what they’ve forgotten is what companies are worth at their core.
What is to stop Google from looking at the second place competitor to Groupon, buying it for a few hundred million and spending a billion dollars turning it into something that not only beats Groupon but completely destroys the company in the process? Not only would that be cheaper for Google, but a much better use of their wealth.
And how many companies have effectively fought off a business attack from Google in the past? If I was working at Groupon, I’d be very worried about my future.
I really think that the company should have taken the offer from Google, and worked with them to dominate the discount deals niche. Besides, it would have been an amazing cash-out for all the investors and high level executives.
I think in two years, we will look back and laugh at Groupon as we all spend our money on Google Local Deals, a service integrated into their local search, image search, and checkout services.