Google Looking At Other Coupon Companies

Numerous news sources are quoting the New Iork Post's exclusive story about Google looking to acquire another coupon company after Groupon, the largest in the space turned down an offer of $6 billion.

The Post reported that "talks show that the search giant is intent on jumping into the fast-growing local coupon market through acquisitions and not through organic growth. There was some thought that after Groupon this month rejected Google's offer that the Mountain View, Calif., company would build its own coupon service. Groupon has an 80 percent coupon market share and claims to have $1 billion in annual revenue -- making buying its nearest competitors a humbling proposition".

"LivingSocial, with a $1 billion valuation, is the second-largest coupon site. New York's BuyWithMe, the third- or fourth-biggest player in the space, may also be on Google's short list, though it has only $20 million in revenue." the Post reported.

As we reported earlier this month, "Groupon Chief Executive Officer Andrew Mason, who started the company in 2008, was concerned being owned by Google would "sap employee morale and alienate business clients."

No doubt, Google saw Groupon's relationships with local small- and medium-sized businesses as a big incentive for the acquisition. Groupon also boasts 33 million subscribers in 35 countries".

About the author

Frank Watson has been involved with the Web since it started. For the past five years, he headed SEM for FXCM -- at one time one of the top 25 spenders with AdWords. He has worked with most of the major analytics companies and pioneered the ability to tie online marketing with offline conversion.

He has now started his own marketing agency, Kangamurra Media. This new venture will keep him busy when he is not editing the Search Engine Watch forums, blogging at a number of authoritative sites, and developing some interesting online community sites.

He was one of the first 100 AdWords Professionals, a Yahoo and Overture Ambassador, and a member or mod of many of the industry forums. He is also on the Click Quality Council and has worked hard to diminish click fraud.