Tuesday, November 30, 2010

Groupon's Board Is Meeting Wednesday To Decide Whether To Take Google's $6 Billion Offer

Andrew Mason, Groupon

Groupon's board is having a conference call on Wednesday to decide whether to take Google's humongous offer ($5.3 billion, plus a $700 million earnout, according to Kara Swisher), Amir Efrati and Geoffrey Fowler of the WSJ say.

Unless Groupon's board has gone stark-raving mad, the answer should be "yes."

As we discussed earlier, this is a whopping huge pile of money for a 2-year old company, even one growing as fast as Groupon. Still, it's a smart move for Google, whose core business is maturing and whose cash $33 billion of cash is rotting away on its balance sheet.

Integrating the two companies will be very challenging, as it is hard to imagine two more different cultures.  (Engineering in Google's case, sales and marketing in Groupon's).

But integration isn't Groupon's board's problem...

See Also: Here's How Google Could Instantly Ruin Groupon After It Buys It

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Groupon's Board Is Meeting Wednesday To Decide Whether To Take Google's $6 Billion Offer


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