In truth it is only Google who can afford to buy Groupon at the valuations being bandied about. It has the infrastructure, Internet clout (local advertisers) and profits (only adwords makes money for Google). Google has a history of paying lots of money for big ideas and although they can't monetize them immediately that doesn't matter as they have so much cash swilling around it's just important that Facebook don't 'buy the competition' So - is Groupon worth $6Bn? Certainly not in the short term, maybe in the long term with the right amount of Google Support, ensuring that it becomes the 'standard'. After all, there have been discount schemes around for a long time, why does Groupon work better? The key is in the repackaging of an old idea. Voucher schemes from businesses such as vouchercodes.com have been successful but don't command such wild valuation. They aren't very 'clean' sites, the consumer has to work hard to get the info. Groupon 'googelises' this voucher industry, making it simpler for consumers to understand what's on offer. It's Genius in it's simplicity. Could Groupon shareholders make any more profit by not selling to Google now? Almost 100% not. Google are buying at a premium and valuation you would expect when it was a lot larger, which of course is difficult to achieve without Google, but easier with. The gain for everyone is that Groupon has introduced a different form of advertising to adwords and adsense. That's good news for retailers but it's no wonder Google are buying the third largest advertising medium after the two it already owns. Keep up with news on Groupon at http://tiny.cc/fb3en
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