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Summary:

Social shopping site Groupon has acquired European imitator CityDeal, its second acquisition this month. Terms of the deal were not disclose…

Groupon

Social shopping site Groupon has acquired European imitator CityDeal, its second acquisition this month. Terms of the deal were not disclosed. Just as Groupon bought Mob.ly as a quick way to extend its mobile services, the purchase of Berlin-based CityDeal is intended to give it a large European presence practically overnight (or 19 months, to be exact), the company said in a blog post.

In addition to local sites in the U.S. and Canada, there will now be a Groupon geographically tailored to users in Germany, the UK, Ireland, France, the Netherlands, Spain, Italy, Switzerland, Austria, Poland, Finland, Denmark, Turkey, Sweden. It is also working on adding sites for Norway and Belgium.

By way of explaining the reasoning behind the purchase of CityDeal Andrew Mason, Groupon’s founder and CEO explains on the company’s official blog, it was more than enough time and effort to make local sites from Miami to Philadelphia distinctive enough. To do the same for a more than a dozen country-specific sites required an established presence.

CityDeal has raised about

  1. Its about time Andrew Mason stopped wittering on about “clones” and “knockoffs” grew up a bit and referred to his competitors as what they are, competitors. Does he really think he has a god given right to the global concept of group buying. There are other countries out there Andrew other than America. Citydeals only intention from the outset was to sell the business to Groupon. My guess is that this sale will prove to be as good as the US subprime property portfolios that was dumped on the rest of the world by America. Well Andrew welcome to Britain. As the owner of Wowcher.co.uk I welcome you. The way I see it is that we simply have a re-named competitor who at least might raise awareness of the whole concept, spend loads of cash advertising and generate a ton of free publicity for us. You wont get your usual 50% commission here either, at least not if you want to compete with your competitors.

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  2. Business-wise, it was the right decision by Groupon CEO Andrew Mason to buy the German clone CityDeal. In a market where fast eats slow, where large eats small, CityDeal is indeed the nucleus of Groupon Europe.

    Cloning à la Samwer meanwhile has become more a kind of international / European expansion outsourcing business for US start-ups than the originally dumb copy-cat. Admittedly, they’re good at this, as alando, StudiVz and now CityDeal can prove.

    And the effects on genuine German start-ups in their efforts to raise early-stage funding will be devastating. From now on, an even larger share of the scarce early-stage funding will be allocated to cloning US business models: they’re less risky and provide a good exit opportunity if executed in the right way. Looks, that we might become the high-end in the clone business. And that’s a tiny niche we should not excel in.

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  3. atlantadining Monday, May 17, 2010

    We’ve been in the space for a while now – we keep under the radar – we let restaurants golf courses etc advertise without ever having to spend cash – we take trade – then we sell the trade at a discount as a beneit to club members AAA and employees Time Warner and on the web –

    We give our adveritsers links from our web sites – http://www.atlantadining.com http://www.visitbuckhead.org http://www.visitmagazine.com – twitter.com/DiningPerksAtl – We provide and run twitter accounts for them, we;ve had our own radio and tv show in the past. We even showed up on the Neilson Rating while running on cable –

    Presently we are adding dentists, auto repair shops, chiropractors into our system with great results – many are paying cash – many we are doing the trade and trade conversion thing.

    We have a national franchise plan ready to roll — and are interested in hooking up with someone to take advantage of the frenzy —

    Because we provide a value and a service of great value to the advertiser (more than just discounting) the advertiser tends to stay with us on a permanent basis – we require a 12 month contract – –

    joe somerville
    CEO/Founder
    All Around Media, LLC
    atlantadining@gmail.com

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