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Acquisition Buzz Links Yahoo, Groupon

Groupon CEO says "uggggggghhhhhhh!" in response

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File this one in "maybe, possibly, perhaps" category: rumor has it that Yahoo, with its history of dealing in search, advertising, and content, just might acquire popular deal of the day site Groupon.

Kara Swisher reported earlier this afternoon, "Sources said Yahoo has been eyeing [Groupon] for possible acquisition, which would put it smack dab in the hot space around local purchasing and consumer information."

And that would make a degree of sense, since Yahoo’s been trying to explore new niches and Carol Bartz recently told David Lieberman, "It is far from a healthy, vibrant economy."

YahooSwisher’s sources said that nothing’s been decided for sure, though, and we’re not at all close to the point at which possible purchase prices get bandied about.

The CEO of Groupon, for his part, didn’t help to clarify the situation in a brief telephone conversation with Nick Saint.  Andrew Mason’s response to a request for comment was, according to Saint, "Uggggggghhhhhhh!"

As always, we’ll see what happens and be sure to report any significant developments.  One relevant point: Groupon raised $135 million in April in a funding round that put its value at $1.35 billion.

Acquisition Buzz Links Yahoo, Groupon
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  • InvDaily

    Yahoo would never, ever make that investment back. It’s simple for them to bypass the middleman and just go after their email users themselves. If anything, daily deal companies should pay Yahoo for access to its email users. I bet LivingSocial could pay $50-100m for rights to Yahoo Mail for 12 months, and I bet they could make money off it.

    If Yahoo wanted to deal daily, two options:
    Yahoo Option 1: Spend six months hiring and training local sales reps in every applicable market. All-in annual costs are about $10m, tops, inc. credit card fees.
    Yahoo Option 2: Pay annualized fees of $200m+ for someone else’s list.

    Seems like an obvious decision not to buy, but that’s why it’s Yahoo.

  • http://www.dailydealpool.com Nora

    Who knows where the world of group-buying and daily deal sites is going to end up. All I know is that sites like Groupon and LivingSocial offer greats ways to get discounts locally in your area and online.

    A great site to use to find deals and sales in your area is http://www.dailydealpool.com. They’ll email you daily with a list from all the daily deal sites out there, ensuring you won’t have to pick through coupons or discounts you don’t want.

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