The Google-Groupon Deal Is Reportedly Dead

4 Comments

Credit: Flickr / Stuck in Customs

Discussions between Google (NSDQ: GOOG) and Groupon have apparently broken off, according to various reports, and the daily deals startup is now expected to instead look for another round of funding and then presumably pursue an IPO. AllThingsD cites a source who says “it’s as over as these things get.” Chicago Breaking Business, which first reported the news, says Groupon will decide whether or not to go public next year. The deal was widely considered to be — almost — a done deal as recently as yesterday.

4 Comments

ChrisM

Don’t know how strong GroupOn’s relationships are with local retailers. How strong can they be when you interact one time with them on a “deal”. Bet a lot of retailers contacted GroupOn after hearing about the company and not from being contacted by one of their call center sales people. Don’t think this is a big competitive advantage. Deals are already sliding to below average in my city with less desirable retailers and smaller savings. Google is smart to walk away from this opportunity.

ed

technoloco,

Groupon has account executives who have relationships with local merchants. No amount of Google technology engineers, fanboys and fluff articles can replace salespeople who are on the ground with the local merchants.

ed

If this is true then thank goodness someone has the backbone and chuztpa to build up a company and go IPO, unlike the cowardly entrepreneurs in Silicon Valley startup community who just want to be acquired or take another round of funding.

How can any industry or sector grow if we have nothing but short-term thinking entrepreneurs who want to take rounds of funding or be acquired just to “cash out”? Going IPO is what Venture Capitals are in the picture for and I’m glad Groupon (being Chicago and not Silicon Valley) is finally going to try to IPO like a real tech startup should..

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