Reports: Groupon rejects Google offer

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Groupon

Updated: December 9, 2010 7:22PM

Chicago daily-deal website Groupon has reportedly rejected a buyout from Google that was believed to be as high as $6 billion.

Bloomberg News quoted an unnamed source on Friday as saying that Groupon's founders hesitated to go through with the deal.

A Google spokesman declined comment late Friday, and a Groupon spokeswoman could not be reached to comment.

One local tech executive speculated that Groupon leaders might actually see a bigger payout by waiting and going public or getting a bigger offer in the future.

"If they reject a deal with Google, you can be dead sure they see an even bigger payout down the road. Think of Facebook, Twitter and Google. All of them have rejected offers that at the time seemed crazy and now they seem low," said Matt Moog, founder and CEO of Viewpoints.com.

While the Chicago tech community excitedly awaited word about a possible sale of the company earlier this week, Groupon announced its own acquisitions and platform expansions: New markets in Asia, a bigger presence in Silicon Valley and the introduction of Groupon Stores, in which businesses create and launch their own deals whenever they want. The site also started the Deal Feed, a Twitter-like feed of deals offered by merchants. The features will let merchants post their deals more quickly, since it can take months for a promotion to be featured as a daily deal on Groupon.

Chicago tech enthusiasts laud Groupon founder Andrew Mason, a 29-year-old Northwestern University graduate known for his off-beat humor, and serial entrepreneurs and investors Eric Lefkofsky and Brad Keywell. They are credited with turning what started as a networking site for social causes into a company redefining website advertising. It has grown into a powerhouse with 3,500 employees and 20 million subscribers in 30 countries.

Groupon also has become an important contributor to Chicago arts and cultural organizations, and has given the city its long-sought bona-fides as a technology innovator.