tag:blogger.com,1999:blog-6569681.post5121467385973701192..comments2024-01-15T13:17:33.771-08:00Comments on Geeking with Greg: Groupon is not GooglyGreg Lindenhttp://www.blogger.com/profile/09216403000599463072noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-6569681.post-17333843288118514082010-12-04T09:43:08.700-08:002010-12-04T09:43:08.700-08:00It appears that the deal is off for now but then a...It appears that the deal is off for now but then again it could be back on next week.<br /><br />It is a totally odd acquisition to pursue because Google could build a similar service within a few months which would have higher branding power than Groupon. But, it is mostly odd from a strategic sense by moving so far away from its core.Dinesh Vadhiahttp://www.xyggy.comnoreply@blogger.comtag:blogger.com,1999:blog-6569681.post-35259514073455708692010-12-04T08:12:06.351-08:002010-12-04T08:12:06.351-08:00Another good article:
http://www.businessinsider....Another good article:<br /><br /><a href="http://www.businessinsider.com/googles-groupon-bid-signals-desperation-loss-of-confidence-2010-12" rel="nofollow">http://www.businessinsider.com/googles-groupon-bid-signals-desperation-loss-of-confidence-2010-12</a>Greg Lindenhttps://www.blogger.com/profile/09216403000599463072noreply@blogger.comtag:blogger.com,1999:blog-6569681.post-62118277566777987202010-12-03T13:38:12.039-08:002010-12-03T13:38:12.039-08:00A thoughtful analysis:
Groupon is Google’s $6 bill...A thoughtful analysis:<br />Groupon is Google’s $6 billion Facebook hedge at http://venturebeat.com/2010/12/03/groupon-is-googles-6-billion-facebook-hedge/Dinesh Vadhiahttp://www.xyggy.comnoreply@blogger.comtag:blogger.com,1999:blog-6569681.post-80421972408155249092010-12-03T09:43:47.248-08:002010-12-03T09:43:47.248-08:00Hi, Anonymous. I'm not missing the point, I j...Hi, Anonymous. I'm not missing the point, I just disagree with it. In particular, I'm suggesting that the difference in culture and mission makes this big deal very risky. Most big acquisitions fail to generate value, and it seems very likely to me that this one will fail to generate value too.<br /><br />But, sure, it's worth looking at other points of view here too. Here's a few other good opinions on the deal, the first two mostly positive, the last two mostly negative.<br /><br /><a href="http://blogs.reuters.com/felix-salmon/2010/12/03/why-googles-groupon-buy-makes-sense/" rel="nofollow">http://blogs.reuters.com/felix-salmon/2010/12/03/why-googles-groupon-buy-makes-sense/</a><br /><br /><a href="http://dealbook.nytimes.com/2010/12/01/googles-bid-for-groupon-is-seen-as-a-bargain/" rel="nofollow">http://dealbook.nytimes.com/2010/12/01/googles-bid-for-groupon-is-seen-as-a-bargain/</a><br /><br /><a href="http://techcrunch.com/2010/11/30/why-google-groupon/" rel="nofollow">http://techcrunch.com/2010/11/30/why-google-groupon/</a><br /><br /><a href="http://searchengineland.com/google-would-be-crazy-to-spend-5b-for-groupon-57275" rel="nofollow">http://searchengineland.com/google-would-be-crazy-to-spend-5b-for-groupon-57275</a>Greg Lindenhttps://www.blogger.com/profile/09216403000599463072noreply@blogger.comtag:blogger.com,1999:blog-6569681.post-59990480995055666332010-12-03T09:20:56.314-08:002010-12-03T09:20:56.314-08:00@Dinesh Vadhia
"But, like you said, how diff...@Dinesh Vadhia <br />"But, like you said, how difficult would it be to replicate Groupon. Maybe, Google wants a head start" <br />If it was that easy, Google would have been successful in duplicating twitter and facebook. The market is very different. Once you have the customer base, treat them well and continue to innovate, you make it hard for duplicate to succeed. So the fact that Google has a lot of money doesn't mean they are successfully duplicate it. From their track record in relation to duplication, I will say they will fail at duplicating GoupOn unless GroupOn screws up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6569681.post-53483672828057734552010-12-03T09:14:56.224-08:002010-12-03T09:14:56.224-08:00I think you are missing the main point here. The c...I think you are missing the main point here. The culture might be different but the business goal is the same. Both companies sell advertising except that Goupon to businesses has a better ROI than Google. So Google is not trying to buy Groupon because they feel like spending money but because Goupon (if left alone) could take a big chunk of Googles bread and butter. That's what this is all about.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6569681.post-54699856727590632222010-12-03T06:12:22.608-08:002010-12-03T06:12:22.608-08:00It does appear misaligned with Google's core d...It does appear misaligned with Google's core depth but it could be the largest signal to date that a shift has been taking place at Google for a while.<br /><br />Mobile and mobile commerce appears to be where Google is heading. They've ramped up their shopping site. The next Android includes support for Near Field Communications which will make purchases at brick and mortars a snip. Marissa Meyer's move to the local search cum recommendations cum serendipity engine group. And, probably other events.<br /><br />Another angle could be to keep Groupon out of the hands of Facebook, Yahoo! and Microsoft. But, like you said, how difficult would it be to replicate Groupon. Maybe, Google wants a head start.<br /><br />Interesting times.Dinesh Vadhiahttp://www.xyggy.comnoreply@blogger.comtag:blogger.com,1999:blog-6569681.post-87064464918463735322010-12-02T12:42:47.291-08:002010-12-02T12:42:47.291-08:00@niraj Google can get 1% returns risk free by keep...@niraj Google can get 1% returns risk free by keeping their cash in the bank. It doesn't make sense to exchange a risk free 1% return for one with lots of risk.<br /><br />@Elko I have an MBA and know many MBAs. Like niraj, I think you're missing the risk in your discussion of the potential return on this deal. And, I think the risk of buying a company outside of their mission and with a different culture is substantial. As for dividends, as a public company, if Google cannot find a better use for the cash, they are obligated to issue dividends, though I agree that there should be better uses for the cash. I'd recommend spending their cash investing internally in their own employees and buying small startups with strong developers, interesting technology or data, and well aligned cultures.Greg Lindenhttps://www.blogger.com/profile/09216403000599463072noreply@blogger.comtag:blogger.com,1999:blog-6569681.post-51573178831400925332010-12-02T10:42:01.338-08:002010-12-02T10:42:01.338-08:00Not the first time I've seen Greg take a swipe...Not the first time I've seen Greg take a swipe at MBAs. Over half the MBAs I know are geeks. LOL. I'm sensing a complex.<br /><br />Google is a publicly traded company and its management wants to grow the share price. Adwords and Adsense aren't going to float the ship forever.<br /><br />Offshore wind farms sound awesome, but shorter term ROI in emerging market niches might help keep share price rising, which in turn keeps employees rich and happy, and offers new applications of existing technology.<br /><br />God forbid they dividend out the cash instead.<br /><br />The good news is that if the marriage works, we all win. If it doesn't, there are hundreds of groupon clones for us to take advantage of.Unknownhttps://www.blogger.com/profile/10745261719453159634noreply@blogger.comtag:blogger.com,1999:blog-6569681.post-8486830122689634812010-12-01T23:55:12.635-08:002010-12-01T23:55:12.635-08:00e.schmidt has been talking local for the last year...e.schmidt has been talking local for the last year. Investments in mobile are starting to fructify and this play is aligned.<br /><br />The brin/page koolaid is only one tentacle now. Look through alot of the patents granted in the last 24 mo. and its apparent that there's a whole 'nother game of being the market maker/owner for adverts.mrgnoreply@blogger.comtag:blogger.com,1999:blog-6569681.post-72556944988910099192010-12-01T17:10:35.960-08:002010-12-01T17:10:35.960-08:00Hi Greg,
Really enjoy reading your blog. I agree ...Hi Greg,<br />Really enjoy reading your blog. I agree that Groupon isn't consistent with other Google acquisitions that relate to technology. So I guess they are buying loyal users and hope to add better targeting. As you mentioned "There is no technology at Groupon".<br /><br />Frankly, I'll be glad once basic targeting is used on Groupon. As a man, I'm tired of seeing deals for facials and day spas. But I have bought deals for snowboarding lessons and golf tee times.Unknownhttps://www.blogger.com/profile/02809904521774582820noreply@blogger.comtag:blogger.com,1999:blog-6569681.post-80918764050158930522010-12-01T15:05:09.860-08:002010-12-01T15:05:09.860-08:00- Google has $30B of cash sitting there doing noth...- Google has $30B of cash sitting there doing nothing. Groupon will atleast get >1% returns.<br /><br />- Besides Groupon is where google is ability to handle scale. Deals at large scale.nirajnoreply@blogger.com