Update 4:  Groupon has reportedly rejected Google’s offer.

Update 3: Kara Swisher is now reporting that Google has offered $5.3 billion for Groupon, citing "sources close to the situation."

Update 2: We just got a response from Groupon on the matter: "One day, we will have to choose to stay private, go public, or sell. We want to continue to build a great company exactly the same way we’re building it today. Recently there has been a lot of press about these exciting possibilities, but currently there is nothing new to report."  

Update: Google responded. A spokesperson tells WebProNews, "Good morning. Unfortunately, we don’t comment on rumor or speculation."  Not exactly a denial. 

Original Article: Rumors of Google possibly acquiring Groupon stem back to November 19. Now the rumors are hotter than ever, as unconfirmed reports indicate that Google actually is acquiring Groupon. 

The rumors started when generally reliable All Things Digital reporter Kara Swisher said, "According to multiple sources close to the situation, Google is in discussions with local deals powerhouse Groupon about buying it. . . .  [S]ources said the price being considered is certainly no discount – well above the $2 billion to $3 billion that Yahoo offered Groupon in acquisition talks that took place earlier this year."

That was ten days ago. Now VatorNews reports:

Google has just purchased Groupon for $2.5 billion, according to an unnamed insider who spoke with VatorNews.  Neither Google nor Groupon could be reached for comment to confirm the report, but Vator’s source is reliable and the report falls in line with the recent string of Groupon acquisition rumors.

We’ve contacted both Google and Groupon ourselves, but have yet to get a response from either party. Usually, if they didn’t have an announcement to make, Google would offer its usual ‘we don’t comment on rumors and speculation’ kind of response. We still might get that, but nothing so far.

$2.5 billion would be two and a half times Groupon’s valuation, which according to Mashable is $1 billion, with the company bringing in a reported $50 million a month in revenue. 

The Google acquisition rumors follow similar rumors about Yahoo and Groupon, but those never amounted to an acquisition obviously, though Yahoo and Groupon did team up recently on a distribution partnership for Groupon deals to be integrated with Yahoo’s new Local Offers program. 

This in itself would be particularly interesting if these new rumors are true, because Yahoo, one of Google’s classic competitors is striving to be THE place for local deals, with that program, which the company is using to try and  "build one of the largest and most comprehensive repositories of local offers on the Internet." 

It’s an exciting time to be a local business. Google also recently launched a new social recommendation engine to tie into its local search results. An acquisition of Groupon could mean an even bigger stake for Google  in consumer’s local habits. And what if Groupon was somehow tied to Google accounts like most other Google products? 

The rumored-acquisition could also be a big part of Google’s strategy against Facebook, which recently announced Facebook Deals.  In fact, the "deals" space is getting much more competitive in general. Just last week, Yelp launched its new offering. 

Do you think a Groupon acquisition by Google would be a good thing? Tell us what you think.