Updates to this story
The price for buying Groupon has jumped up to $6 billion now and reports indicate that Google is closer to inking a deal.
Yesterday a rumour surfaced that Google was attempting to buy the coupon and discount service, which is effectively another advertising stream, but the speculated offer was only $2.5 billion.
Since this was well below the up to $4 billion that Yahoo reportedly offered Groupon in a failed acquisition attempt earlier this year, we wondered why Groupon would sell for significantly less to Google. With news that the price has jumped up to between $5 billion and $6 billion, a deal looks much more likely.
However, there is still room for talks to fall apart, as both companies are said to be still deep in negotiations, according to the New York Times. The price could rise or fall depending on those talks, or Groupon could feel the money offered is not enough.
With Groupon worth around $1.3 billion, according to an evaluation earlier this year, it would probably be mad to turn down a $6 billion offer, unless it believes it can push the service further without the aid of a big company like Google.
Google and Groupon are still keeping tight-lipped on this as the negotiations are ongoing, but some sources suggest the deal is likely to conclude by the end of the week.