Google Inc.’s attempt to buy local-coupon site Groupon Inc. appears to have failed for now, according to published reports.
Groupon, whose ties to local merchants and some 35 million subscribers worldwide made it a company worth potentially $5 billion to $6 billion to Google, has decided to stay independent for now, according to the Chicago Tribune, The Wall Street Journal and The New York Times, which cited unnamed sources close to the negotiations. The reports say Groupon may pursue an initial public offering of stock.
Messages by The Associated Press for Google and Groupon representatives were not immediately returned Saturday.
Groupon, a two-year-old startup based in Chicago, dangles a different bargain each day to people signed up for the service.
Google was pursuing Groupon in an attempt to turn the Internet’s largest advertising network into an even more powerful marketing vehicle. It would have marked the highest price that Google paid for a company, eclipsing its $3.2 billion purchase of online advertising service DoubleClick Inc. in 2008.
Forrester Research retail analyst Sucharita Mulpuru said Groupon made a mistake if the reported $5 billion figure had been an up-front cash payment “because that was the best the company would do on a valuation standpoint.”
But Mulpuru said that if the proposed payout was some kind of staggered deal, subject to Groupon meeting certain performance targets over the next few years, walking away “wasn’t such a bad idea, because they probably weren’t going to meet those hurdles.”
Groupon’s aggressive expansion may mean that the site is “already coming up against diminishing returns, and that’s been fundamentally one of the biggest challenges of this space,” she said in an interview with the AP. “The success of the business is based on great deals, and to get great deals, you have to have a lot of salespeople out there selling, and that’s an expensive way to grow a business.”
Groupon employs about 3,000 people and is run by its 30-year-old founder, Andrew Mason.
Groupon has spawned numerous copycats, including LivingSocial, CrowdSavings, BloomSpot, Tippr and Scoop St. The mimicry has raised worries among some analysts that Google is paying far too much for a business that can so easily be cloned.
But Google could have easily afforded the deal, with $33 billion in cash as of Sept. 30. Mulpuru said a technology company such as Google might be willing to pay more than the company’s value to keep it out of the hands of rivals such as Yahoo Inc. and Microsoft Corp.
The privately held company raised about $165 million in venture capital to get off the ground.
Besides North America, Groupon also operates in South America, Europe and Asia.
Nominees Unveiled For Cinema Audio Society’s 61st Annual Awards
The Cinema Audio Society has unveiled its nominees in seven categories for the 61st Annual CAS Awards for Outstanding Achievement in Sound Mixing 2024.
The 61st CAS Awards will be held on Saturday, February 22, at the Beverly Hilton.
Nominated in the live action motion picture category were the audio teams behind A Complete Unknown, Deadpool & Wolverine, Dune: Part Two, Gladiator II and Wicked.
Animated motion picture nominees were the sound ensembles behind Inside Out 2, Moana 2, Mufasa: The Lion King, The Wild Robot and Wallace & Gromit: Vengeance Most Fowl.
As previously announced, multi-award-winning sound mixer Tod A. Maitland CAS (A Complete Unknown, West Side Story, Joker), will be honored with the CAS Career Achievement Award. In addition, visionary filmmaker Denis Villeneuve (Dune: Part Two, Blade Runner 2049, Arrival) will receive the Cinema Audio Society’s Filmmaker Award.
The CAS Award nominees highlight the outstanding contributions of sound mixers, recognizing excellence in the specialized craft of sound mixing for both film and television. Each year, accomplished CAS members—who possess extensive expertise in the art and science of sound—carefully review hundreds of projects to ensure the nominees truly reflect excellence in sound mixing in Motion Picture and Television entertainment.
“2024 was a year of remarkable achievements in the sound community, with exceptional talent on display across every category,” said CAS president Peter Kurland. “The innovation and artistry of these sound mixers continue to elevate the craft, and the upcoming awards will be a celebration of the outstanding contributions made this year. Congratulations to... Read More