Google turns its local eyes to Groupon

From CNET News.com: According to multiple sources close to the situation, Google is in discussions with local-deals powerhouse Groupon about buying it.

Without making the requisite joke about the deal of the day, sources said the price being considered is certainly no discount-well above the $2 billion to $3 billion that Yahoo offered Groupon in acquisition talks that took place earlier this year.

But sources cautioned that the talks are not complete, and could also end up without any result, as the Yahoo discussions did.

In an e-mail, a Google spokesperson said with some style: "Per usual, we don't comment on rumor or speculation. If we did we'd be busy 24/7!"

A Groupon spokesperson was also sassy, noting: "Thanks for the heads up!"

Still, the company appears to be engaged in a pattern of shopping itself around, via its bankers Allen & Co., even though Groupon investors have expressed a desire to stay independent many times.

But could there be other interested parties poking around, given the explosive revenue growth of Groupon-whose revenues are reportedly upwards of $50 million a month-in the huge local retail market?

Sources said only three could pay such a high price: Microsoft, Amazon and, perhaps the most logical buyer, eBay.

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