Dec 7

Google fails to buy out Groupon

Category: Technology

 Search engine giant Google stirred controversy over the weekend by its inability to clinch a deal with Groupon which provides online marketing services for local entrepreneurs. The supposedly expensive acquisition is being viewed by business analysts in two ways, specifically as an almost overpaid transaction or a mistake that could cost the company in terms of strategic business planning. The previous week, Google was engaged in negotiations with Groupon about price which reached US$5 billion. This information was disclosed by an official who was familiar with the dealings between the two companies which would have proved to be Google’s biggest ever.

Unfortunately, negotiations fell through by the end of the week. Analysts and investors say that with the enormous price that Google was willing to shell out for the two-year old company, there’s proof that young internet businesses are headed in the right track. Forrester Research business analyst Augie Ray says that prices for young online businesses are rising, especially for those that have recently started. Ray adds that prices are solely based on speculations made by fellow business analysts internally working for the companies involved.

Meanwhile, a New York venture capitalist Fred Wilson who served as an early financial supporter of social media starters Twitter and Foursquare, said over at a weekend post that investment in certain businesses have increased to an almost hyperactive level. Wilson adds that inventors are now splurging their money investing on young and hyperactive businesses which plan ahead and have big hopes and dreams for their company.

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