Groupon Rumoured To Have Been Bought By Google For $2.5 Billion

Google is rumoured to have acquired online discount service Groupon for $2.5 billion.

Vator TV reports that an unnamed source has confirmed that Google is to purchase the service for a whopping $2.5 billion. However, the companies are yet to make a formal announcement on the matter.

Talk of a deal between Google and Groupon was first reported on the 19 November, although it is only now that a deal appears to have been reached.

Groupon, which was founded in 2008, rakes in more than $50 million in revenue every month. An earlier fund raising session valued the company at over $1 billion. The company has over 20 million subscribers and operates in 29 countries.

The company was one of the first group discount sites on the market and works by offering deals based on how many subscribers sign on to a specific offer. This guarantees the retailer a bulk sale and allows the consumer to reap the benefits of the daily discount. If not enough people sign up the deal collapses.

The company offers different deals-of-the-day for each of the localised markets it operates across the US and Canada although it does nationwide deals in these countries too if enough subscribers get behind a deal.

The deals organisation had reportedly also been approached by Yahoo and eBay for a possible takeover. It was widely expected that eBay was going to be successful after Groupon announced a deal in October with the online auction company, which allowed eBay users to get local deals with the help of Groupon.