The web world is a buzz with the news of Google’s bid to buy Groupon, the Chicago-based startup company. Can we say it a complete rumour? No!
According to analysts, this Google’s multi-billion dollar deal, though pricey, makes a lot of sense for the search giant.
Groupon , an online discount service website that offers deals from local merchants daily. It has been a big online hit that has spread over to more than 100 U.S. cities in less than two years. Reports by an online metric company revealed that Group buying sites like Groupon have become a rage these days that has made inception of many other companies like these. It was seen that Groupon alone received about a half of the web traffic last year that 81 sites of this category together attract.
Groupon has turned extremely popular. We can say this by seeing its August deal in which Groupon site advertised a $50 Gap card for $25. to take benefit of this offer, about a half million people snapped up the offer. This was just one example how hot online coupons are right now with the increasing fashion of social networking and growing use of smartphones of all ages.
This time, Google is reportedly closing in on deal for up to $ 6 billion, which is its largest ever after its purchase of DoubleClick for $3.2 billon in 2008 and YouTube for $1.65 billion in 2006.
As per experts, Google will further strengthen its local commerce capabilities after closing of this deal to buy Groupon. Google is set to close another deal worth $700 million for travel technology company ITA Software proposed by it in coming time but Google's competitors are making things tough for Google to let this happen.
In other news related to Google, Google has signed an agreement with the European Patent Office to translate patents into 29 European languages by using its technology. The EPO has 38 member countries. This deal is a step towards simplifying European patent system after years of infighting, hope officials. Also, the deal will facilitate inventors and scientists from across the continent to read and understand patents with more ease. The Google translation service is expected to feature on the EPO's website.
Contrary to this, Google's vice president Carlo d'Asaro Biondo said that the company did not expect a financial profit in the beginning of this deal.
By Maneet Puri