Google offering $5.3 billion for Groupon?

From CNET News.com: According to sources close to the situation, Google has offered $5.3 billion for Groupon, in what would be its largest acquisition yet if completed.

Sources said the deal for the Chicago-based social buying site seemed likely to be struck, even as early as today, although it certainly could fall apart right up to the end.

But, if done, it will move the search giant instantly to the top spot in local commerce online and give it huge troves of data about consumer buying habits and merchant information across the globe.

Combined with its pending $700 million acquisition of ITA Software, the travel data firm, that should freak out regulators worldwide and could be considered Google's own version of a jobs plan for antitrust lawyers.

That said, it is a killer move for Google--despite a high price--given it has long tried to enter the local advertising space, with decidedly mixed results.

With its more than $33 billion in cash and strong stock, it had previously tried to buy local reviews site Yelp, in deal that fell apart for reasons that are still unclear.

In contrast, Groupon, founded in 2008, has taken off like a Roman candle and dominated the huge market for social shopping and discounting.

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