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Being part of Google changes things as (1) Google can finance a money losing operation for quite some time and (2) Google offers integration into its huge ecosy
by imjustatechguy 15y ago
Being part of Google changes things as (1) Google can finance a money losing operation for quite some time and (2) Google offers integration into its huge ecosystem, especially its existing robust advertising network.
Thus Google brought a lot to the table in such acquisition which would increase Groupon's value.
- raganwald 15y agoThis is the most insightful and concise thing I've read about the Google proposal so far. Google offering B$6 doesn't mean Groupon is worth B$6 on its own, it means it's worth B$6 to Google. Google is not Warren Buffet investing in the hope of a passive but safe return on investment. Google was betting that Google + Groupon was worth more than Google + B$6.
- clobber 15y agoHave to keep in mind that the 40%+ that Groupon spends on marketing and customer acquisition largely goes to Google in the form of AdWords spend. Google still wins because of all they make from Groupon from AdWords.
- veyron 15y agoYou mean Google - B$6 + Groupon > Google or Google - B$6 + Groupon > Google - B$6 + investing in other ideas or companies
- raganwald 15y agoI wrote something along those lines originally, but it seemed simpler to leave the details out. I trusted HN readers to fill in the rest :-)