So Much For Grooglpon. Groupon say’s No Thanks to Google!

The big story this week in social media was Google’s attempt to buy group discount company Groupon for 6 BILLION dollars. To which Groupon said “No Thanks” yesterday. Many might think this was a crazy decision on Groupon’s part (6 billion dollars is A LOTTTTT of money) but it might make a little sense. Groupon is the fastest growing company of its kind, leaping light years ahead of it’s nearest competitor, LivingSocial. They’ve absolutely exploded onto the scene and pretty much took the discount market by storm in a very, very quick fashion. To be honest I don’t think Groupon is going to slow their growth much at all in the near future.

I think the main reason that Google wanted to buy Groupon was because Groupon offered something very specific that Google was never able to accomplish. We all know Google to be this huge mega company that does everything on a huge scale. what Google lacks is local advertising distribution. Groupon (and any other group discount company) will have a much superior grasp on local advertising. The 6 billion dollar acquisition of Groupon would have made Google billions on top of what they already make. But Groupon knows that they can make it themselves, at least for the time being.

Regardless this is a pretty new area of social media that definitely isn’t fully saturated yet. But with only a few companies in the ring and with Groupon dominating the competition, it makes me wonder just how big this business can be.

If you don’t know what Groupon is, or how it works, here’s a couple videos: