Direct Line Blog

Google to gobble up Groupon?

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Media reports suggest that Google has its eye on Groupon, the leading social buying site. Really it's more than an eye; it's a more than $5 billion offer, according to All Things D's Kara Swisher.

Groupon, a company we've followed closely here at Direct Marketing News (read an interview with president/COO Rob Solomon here and Groupon's push for more national retailer deals here), offers daily discounts to its subscribers through e-mail, phone apps or social networking.

While neither company has confirmed the rumors yet, media reports suggest the deal could be completed at any moment. Of course, Google would face more anti-trust scrutiny for a deal of this size.

Whatever happens, most pundits see this as a good move for Google because Groupon will provide it with a stronger position one of the hottest marketing categories out there: local.

From The New York Times' Dealbook blog:

The deal would also be Google's boldest foray in local business online advertising, a large and untapped market it has been trying to get into, most recently by promoting Marissa Mayer to oversee the local business and attempting to buy Yelp, the local review site, last year.

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