Sunday, December 19, 2010

Groupon & Beyond


So, its clear that Groupon isn't going to go with Google, who made a historic  $6 billion offer, which would have been highest ever spent by Google on acquistion till date upping the DoubleClick which they acquired (officially) back in 2008 for $3.1 billion. 



This is interesting in more ways than one. Its one of the few companies to come out in recent times which have had a dramatic influence, and its expected revenues are in a range anywhere between $800 million to $2 billion. To put in context, $2 billion is the expected revenues of Facebook for year 2010 and considering its just two year old, its quite an achievment. 

When Google (supposedly) offered $6 billion for it, everyone had an opinion, some saying it might be overvalued due to bubble, or that it isn't sustainable in long run or that it has a surprisingly large employee force which could hinder its growth. And, other side saying that how much would Google have to pay if it doesn't pay for it now if some compititor bought it (read facebook). But, make no mistake Google has been very shrewd with its acquisition and has made really good use of that stratergy (AdSense, Voice, Android, all came through acquisitions one time or the other) and has not yet anything like ebay-Skype at its hands So, Google wasn't (may be)acting foolish courting an idea which was making waves but no potential. 

But, Andrew Mason has supposedly rejected the supposed acquisition offer by google. That makes clear few things clear, for once, its not in the market for acquisition. If Mr Mason wanted to book his profits he could have sold it to Google, and no other company is going for it (or we could have heard of them as well) and yes there aren't many companies in the market who can pay that kind of price. 

Groupon, obviously have a very interesting future, they have made clear that want to become Amazon/eBay of web 2.0. Congratulations, Mr Andrew Mason you are going to make history one way or the other. 

No comments:

Post a Comment