Google nears deal to buy Groupon: report

BOSTON (BestGrowthStock) – Google Inc (Read more about Google Stock Analysis) is close to a deal to buy local advertising website Groupon Inc in what could be the Internet giant’s biggest acquisition to date, two media reports said on Tuesday, citing unnamed sources.

The New York Times reported that the two companies were negotiating a price somewhere between $5 billion and $6 billion. All Things Digital said they were talking about a price “well above” the $2 billion to $3 billion that Yahoo Inc offered for Groupon in failed acquisition talks earlier this year.

Both reports said that the talks between Google, whose shares fell 2.8 percent in early trading, and Groupon might still fall apart.

Google could not be reached for comment. A spokeswoman for Groupon declined comment.

There is constant speculation about Google’s acquisition interests as it has a cash war chest of about $33 billion and does not pay a dividend to its shareholders.

Groupon is a privately held, Chicago-based company which was launched about two years ago. It has previously been floated as an acquisition target of Google.

Previous media reports have said that Google had discussions with Groupon about buying the fast-growing e-commerce service for more than $2.5 billion.

Groupon sends its members daily e-mails with about 200 discounts for goods and services. The deals are activated only when a minimum number of people agree to make a purchase, giving Groupon clout to negotiate steep group discounts on products and services.

Shares in Google dropped $16.00 to $566.11 in morning Nasdaq trade.

(Reporting by Jim Finkle and Sakthi Prasad in Bangalore; Editing by Derek Caney)

Google nears deal to buy Groupon: report