Google’s offer of $ 6 billion for Groupon had about 40% of that amount conditioned on the achievement of certain revenue targets. Were Groupon investors aiming to become even richer? Did they fear that Google overshadowed their corporate identity? The reasons for the agreement’s failure seem to have been different, according to the Wall Street Journal, and recently explained the Harvard Law School blog.
The news that Groupon had rejected the opportunity to become acquired by Google triggered a wave of speculation. In the negotiations, many predicted that the Groupon board of directors could not reject Google’s offer.
Groupon aimed to reach more than $300 million of revenue in North America in 2010 and buying this company would give Google access to 12 million consumers. In its first two years, Groupon expanded to dozens of markets, inspired thousands of competitors and hired more than 3,000 employees. Google was looking for opportunities to position itself in local search advertising and Groupon seemed to be the perfect complement. At the end of 2010, Google made an offer of $ 6 billion for Groupon, the technology Chicago-based company that sends emails with daily coupon offers for local products and services to consumers around the world.
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