Google has been on an acquisition frenzy since last couple of years but not every attempt works out in its favor. Groupon, the social deal giant that has grown exponentially in popularity within last 2 years has rejected an offer by Google. The offer of $6 Billion was one of the largest offers in the internet industry, but Groupon thinks it can do better by staying independent.
Many blogs in the last few days had speculated Groupon’s annual revenue to be around $500 Million, but as it turns out, that figure only represents a single quarter. With $2 Billion in annual sales, Groupon’s decision to say NO to Google doesn’t come as a big surprise. Analysts estimate that Groupon will make an attempt to go public in 2011, but with no official statement from Groupon, its exit strategy is still unclear.
The Chicago-based daily deal startup was launched couple of years ago and now employs around 3000 people with a presence in 35 countries. The site offers group-powered discounts on everything local ranging from food and yoga classes to music lessons and oil changes. There has also been speculation about CEO Andrew Mason’s disagreement with the other two founders regarding Groupon’s exit strategy, but nothing concrete has turned up.
A similar site LivingSocial also recently received a $175 Million offer from Amazon.