Google on Verge of Buying Groupon

Hi,
Although several sources are reporting that the two sides are close to an agreement, others caution that Google and Groupon could walk away from the deal at any time. Groupon is a privately-held firm in Chicago that offers group coupon deals that have exploded in popularity via Facebook and other viral marketing initiatives. Because of the set-up, Groupon is the point of sale for all of the deals, then customers get vouchers to use at specific local businesses. Because Groupon controls the groups of purchasers, the group has incredible leverage to entice businesses to offer very low deals in order to attract customers.

Some businesses have had issues with Groupon because they don't understand the kind of volume that the service generates. Small restaurants and coffee shops have been overwhelmed with business to the point that they can't honor the Groupons and actually end up hurting their image in the local community.

Overall, however, Groupon is a huge success and the business model is as sound and innovative as any that has emerged in the last several years. Because of how neatly Groupon meshes with Facebook, Twitter and other social networking sites, people flock to the service. And with a focus on local goods and services, Groupon is functioning in every major market across the U.S., with significant room for growth.