Groupon Turns Down Google’s Takeover Bid

CommanderFrank

CommanderFrank

Cat Can't Scratch It
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Amid reports all week of an imminent buyout offer from Google, it looks like Groupon has left the bargaining table and chose to remain independent, at least for the time being. It must take a lot out of you to turn down $6 Billion dollars for a two year old company.

According to the Chicago Tribune report, however, Groupon has decided that it is better off to stay independent, and focus on growing its business organically, a business that is reportedly going to pull in as much as $2 billion in revenue this year, and is still said to be growing rapidly.
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Can I be the first to say "What a bunch of retards... $6 billion for 2 years of work, and retirement... are you all fucking insane?"
 
"reportedly going to pull in as much as $2 billion in revenue this year, and is still said to be growing rapidly."

I'd say they have a decent chance of making more than 6 billion in a few years.
 
As a Google shareholder, I say "WOOOOOOOOOOOOOO". Why the hell does Google need Groupon? I suppose I could understand it as a defensive move, but 6 billion sounds like a LOT to take a very easily-copied service off the table for Google's competitors.

Google, take your 6 billion and go buy something that adds value to the company and improves your core services.
 
bomberboysk said:
"reportedly going to pull in as much as $2 billion in revenue this year, and is still said to be growing rapidly."

I'd say they have a decent chance of making more than 6 billion in a few years.
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Until Google buys a competitor, dumps 10B into them, and crushed Groupon.
 
bomberboysk said:
"reportedly going to pull in as much as $2 billion in revenue this year, and is still said to be growing rapidly."

I'd say they have a decent chance of making more than 6 billion in a few years.
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That's the same logic Yahoo used to turn down Microsoft.
 
If Google wanted to pay me $6 billion for two years of my work, I'd tell them if its cheaper in taxes for them to give me that in monthly installments over said two years instead of a lump sum, they can go for it.
 
stealthy123 said:
rare integrity.
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Stupidity if you ask me. Competitors WILL open up and start sucking away business from them at which point Google will tell them you had your cahnce so we just gave your competitors a few billion instead.
 
bomberboysk said:
"reportedly going to pull in as much as $2 billion in revenue this year, and is still said to be growing rapidly."

I'd say they have a decent chance of making more than 6 billion in a few years.
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But they have overhead and such to pay for out of the 2 billion, Googles offer was probably 6 billion to their bank accounts instead. They made a stupid decision if you ask me. They will never be able to sell their business or make that much profit for that much. Just think of the intrest alone on 6 billion.
 
bomberboysk said:
"reportedly going to pull in as much as $2 billion in revenue this year, and is still said to be growing rapidly."

I'd say they have a decent chance of making more than 6 billion in a few years.
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Actually the bottom line income is under 500million. So at best lets say its going to take 10-12 years to hit 6billion. Assuming that their income does not rapidly grow over the next few years.

This is only my observation but short of their name there is really nothing special they have. They sell coupons to local areas. Seems to me that a competitor can come in and with the help of advertising, take some of the market share. At the end of the day its just a coupon site. They obviously think they will do better but I would take the money and run to the next idea. I look at all the startups that dont take money and then just shortly after fail. Look at Digg now, while they are still alive they are a far cry from the big success they were a few short years ago.
 
I don't think they have realized how fickle the public is. I see another myspace train coming....
 
Isn't Groupon's current gross market capitalization about 2B? They're preitty stupid to say no to $6B. I can't see the business model working long term, most businesses that have offered Groupons don't like the idea of doing it again. They attract the hated "devil" consumer.
 
BoogerBomb said:
But they have overhead and such to pay for out of the 2 billion, Googles offer was probably 6 billion to their bank accounts instead. They made a stupid decision if you ask me. They will never be able to sell their business or make that much profit for that much. Just think of the intrest alone on 6 billion.
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So? What if the Groupon owner simply loves his job and wants to keep it for himself? Groupon *is* a very awesome service by the way, to those who wonder about it. My girlfriend and I use Groupons about two or three times a week. They have great theater ticket offers and restaurant deals throughout Chicago.
 
I don't think I could pass up $6 billion...wow. This should be an interesting one to watch to see how it pans out.
 
bomberboysk said:
"reportedly going to pull in as much as $2 billion in revenue this year, and is still said to be growing rapidly."

I'd say they have a decent chance of making more than 6 billion in a few years.
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Revenue, ha.

"But how much did you lose".
 
i don't understand how this groupon shit can be worth so much.

it's a deal-a-day site, and every time i look at the deal of the day for my city, it's shitty.

I can see how it could bring extra customers to local businesses. But I don't see how this is still worth $2 bill. or even $6 bill.


http://www.groupon.com/los-angeles/deals
look at this. it's not even everyday that there is a deal. And the deals sound better than they really are.
for instance, the 50% off coupon to nordstrom rack seems like you're getting a helluva deal, but their shit is overpriced already, so you're probably getting the same price as you would get at a regular sale at your local dept store.


internet bubble 2.0 ?
 
Azhar said:
So? What if the Groupon owner simply loves his job and wants to keep it for himself? Groupon *is* a very awesome service by the way, to those who wonder about it. My girlfriend and I use Groupons about two or three times a week. They have great theater ticket offers and restaurant deals throughout Chicago.
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If you read the deal it included keeping on management. They would have been absorbed into the google sphere. In this kind of acquisition there is little reason to oust current employees. So he would have had a job with google and a big payout. Seems win-win to me.
 
dr.kevin said:
i don't understand how this groupon shit can be worth so much.

it's a deal-a-day site, and every time i look at the deal of the day for my city, it's shitty.

I can see how it could bring extra customers to local businesses. But I don't see how this is still worth $2 bill. or even $6 bill.


http://www.groupon.com/los-angeles/deals
look at this. it's not even everyday that there is a deal. And the deals sound better than they really are.
for instance, the 50% off coupon to nordstrom rack seems like you're getting a helluva deal, but their shit is overpriced already, so you're probably getting the same price as you would get at a regular sale at your local dept store.


internet bubble 2.0 ?
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Its usually a spa, nail salon, or hair place anyways.
 
infect0 said:
If you read the deal it included keeping on management. They would have been absorbed into the google sphere. In this kind of acquisition there is little reason to oust current employees. So he would have had a job with google and a big payout. Seems win-win to me.
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I did read that. I meant some people had dreams to own a successful business. Being under another management probably didn't bode well to the CEO.
 
Some people take pride in what they own. Those people will not sell the farm no matter what. They love what they do, and they don't need the money. I'm telling you guys. When your money works for you, and you don't work for money you act differently. Debt can change people too.
 
Has anyone considered that perhaps these guys just enjoy owning the business?

It sounds like they're doing well enough to not have to worry about money, anyway.
 
HOCP4ME said:
Has anyone considered that perhaps these guys just enjoy owning the business?

It sounds like they're doing well enough to not have to worry about money, anyway.
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Get back to me on how much they enjoy being driven out of business in 2 years.
 
Guess I am the only one here who doesn't know what Groupon is... will have to Google it I suppose....
 
Azhar said:
I did read that. I meant some people had dreams to own a successful business. Being under another management probably didn't bode well to the CEO.
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Well of course thats an option but that would be a bad business decision. Other than that, they must think its worth more.
 
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