Google Inc.'s (GOOG) reported interest in closely held Groupon Inc. could lead to the most expensive acquisition yet for the Internet giant, which has been in the midst of a buying spree.
While most of Google's recent acquisitions have been relatively small, online coupon provider Groupon could spur Google to pay as much or more than the $3.1 billion it paid for online display-advertising firm DoubleClick in 2007, in what was the biggest purchase ever for the Mountain View, Calif.-based company.
The AllThingsD blog reported early Friday that Google is considering paying "well above" $3 billion for Chicago-based Groupon, which has garnered a wide following for its daily online offers of heavily-discounted local deals on everything from cheese steaks to theater tickets.
According to SharesPost, which provides an exchange for equity in private firms, investors have been seeking shares of Groupon for roughly $38 apiece, implying a valuation of about $1.6 billion.
An acquisition of Groupon would represent a significant foray for Google further into the market for locally focused online services and information.
A Google spokesman declined to comment. A Groupon spokeswoman also declined to comment, referring to the reported merger talks with Google as "just speculation."
Google, which emerged from the recession relatively unscathed, began the year by announcing it intended to buy at least one company per month.
The company disclosed last month that it spent roughly $1.6 billion on acquisitions during the first three quarters of 2010--which included $681 million paid for mobile phone advertising firm AdMob, $179 million for social-networking software developer Slide, and $626 million spread across 37 smaller purchases.
In addition to DoubleClick, other significant Google acquisitions have included YouTube, the popular video service bought for $1.65 billion in 2006.
Google recently disclosed that it is now pulling in revenue from over 2 billion video views on YouTube per week.
Google's M&A activity has drawn increasing scrutiny from antitrust regulators. Google's purchase of AdMob, for example, was delayed several months before receiving approval from the U.S. Federal Trade Commission.
Google currently intends to purchase travel software developer ITA Software for $700 million. The company said in August that the U.S. Justice Department would be conducting an extended antitrust review of the deal.
Groupon, which was launched in late 2008, says it now offers daily deals in over 300 different markets around the world. The company announced earlier this week that it signed a distribution agreement to make its offers available on Yahoo Inc.'s (YHOO) websites.
-By John Letzing, 415-439-6400; AskNewswires@dowjones.com
http://online.wsj.com/article/BT-CO-20101119-712884.html
