November 29, 2010

Can Someone Please Buy GroupOn?

Can someone please buy GroupOn? 

GroupOn seems to have put up a “for sale” sign. First it was rumors of being bought by Yahoo, then of raising a new round at a massive valuation, then of interest from eBay, Amazon and now rumors of GroupOn being bought by Google. The investors seem to be eager to complete a sale, to anyone. And, hopefully, these are not “Yelp being bought by Google” type of rumors.

GroupOn folks have worked hard and have built a tremendous success. But, with heavy ad spending to acquire new customers and constantly finding deals to sell, can the business model last? It is easier to let the acquirer find out.