My what a difference a day makes. Yesterday, the word on the street was that Google was getting close to buying local deals site Groupon for an estimated $3 billion. Today, that estimate has doubled to $6 billion.
All Things D reports that unnamed sources are saying a deal could even close this week. The detailed terms of the agreement would technically be $5.3 billion up front with a $700 million earnout—not bad for a company that started only two years ago. (More on Time.com: Groupon Starts “Grouponicius Deals” Series For Holiday Season)
It’s believed that Groupon manages to pull in about $50 million per month in revenue, thanks to the 150+ markets it serves in North America and the 100+ markets scattered throughout the rest of the world.
Though these rumors have continued to gain steam over the past couple days, they’re still just that—rumors. And, as All Things D notes, the deal “certainly could fall apart right up to the end.” (More on Time.com: 5 Online Scams To Avoid This Year)
If the deal goes through, though, it’s a pretty big win for both companies. Groupon gets a big payday, while Google quickly entrenches itself into the lucrative local markets in a big way. The search giant could also leverage its other local services—Maps, Buzz, mobile—to complement a Groupon buy.
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