Other Coupon/Local Deal Sites Bought, Groupon Passes On Google Historic $6 Billion Offer

The interest by Google has seen a scramble of people entering the space and other companies in the general space being acquired; what TheStreet is calling the Groupon Halo Effect.

"On the heels of the announcement that Amazon(AMZN_) is investing $175 million in Groupon's #2, LivingSocial.com, and that eBay(EBAY_) is buying Milo.com, local advertising stocks were red hot Friday. Google, Amazon and eBay are stoking the interest in companies that focus on marketing small businesses," TheStreet reported.

Groupon has decided to pass on Google's offer of $6 billion to acquire its company, according to numerous news reports. Interesting to say the least, "If Google had acquired Groupon for up to $6 billion, the deal would have been the largest for a venture-backed company since 1999 and the third largest acquisition on record, according to Dow Jones VentureSource," the Wall Street Journal noted. There have only been two larger acquisitions on record for venture-backed companies, everyone has to be wondering what the VC guys are thinking right now.

"As for Web acquisitions, Google would have owned two of the three largest acquisitions of venture-backed Internet companies. The Groupon purchase would have moved eBay's $2.5 billion acquisition of Skype in 2005 into the number two spot. Google's $1.65 billion purchase of YouTube in 2006 would become the third-largest," WSJ.com noted.

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.