Google Moves on After Groupon Rejection, Eyes Smaller Rivals

December 21, 2010

10:18 pm

Google may be  eying smaller, yet rival group discount services after last month’s decision by Groupon to go it alone rather than be acquired by the advertising giant. The offer to Groupon from Google was reported  to be between $5 billion and $6 billion.

Reports say Google may be considering acquiring other location-based advertising companies such as LivingSocial and BuyWithMe.  However, representatives from these companies and Google have not said anything on the record. In an interview with the New York Post, BuyWithMe interim President David Wolfe declined to comment on whether he was speaking to Google, yet told the Post that he believes Google needs to enter the coupon advertising market.

“BuyWithMe’s demographic is also similar to Groupon’s, with the average customer in their late twenties and early thirties, with over 65 percent making more than $75,000 a year and 75 percent female.”

BuyWithMe is only in 12 markets, whereas Groupon is in 300. LivingSocial has a larger user base, and recently announced a $175 million investment by Amazon.com.

It is reported that Google would “love to add that kind of service geared around specifically targeted local markets, which is seen as a big source of future Internet advertising growth.”

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Marla Shaivitz is a writer, developer and digital marketer. She’s interested in innovations & innovators in technology and those working toward social good. Follow Marla on Twitter at @marlashaivitz.

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