Google Said to Be in Talks to Acquire Groupon

Google is said to be in talks to buy local deals phenomenon Groupon, though the talks are in the early stages and may not go through. Groupon is perhaps the fastest growing company of all time and is valuated at several billion dollars. There's no word on how much Google is willing to pay but it is said to be above the $2 billion to $3 billion Yahoo was prepared to offer in its earlier talks.

According to All Thing D's Kara Swisher, the two companies are in acquisition talks say to several sources. However, the talks may lead nowhere and there is no definitive deal in place.

Groupon has taken the local e-commerce market by storm and is dominating it globally. The site offers deals from local businesses which offer discounts provided a certain number of would-be buyers is reached.

The model is overwhelmingly simple, so a huge number of Groupon clones have popped up. So far though, the company has managed to hold on to its lead.

Groupon is estimated to be bringing in about $50 million per month already and is growing at a huge rate. It has no shortage of investors. Earlier this year it raised $135 million from the Russian DST, now Mail.ru Group, which controls about 5 percent of Groupon.

The company is said to be the fastest growing ever, reaching profitability in less than a year and a billion dollar valuation in less than two.

Google has been very interested in the local market and Groupon would make a great addition to its existing products. Still, the company hasn't dabbled with e-commerce very much.

Groupon is apparently looking for potential buyers, but at its valuation, only a few companies could afford it. Apart from Google and Yahoo, which is said to have wanted to buy the company earlier this year, Microsoft, Amazon and eBay would be likely buyers. Still, since the company is generating great revenue and still growing, there should be little incentive to sell.