Continue Reading Below
According to The Wall Street Journal, Google and Groupon broke off talks on Friday as Groupon’s board was divided on whether to accept the bid. AllThingsD, the Journal’s tech blog, had reported Google offered $5.3 billion for Groupon, with a further $700 million based on certain incentives.
Chicago-based Groupon continues to consider remaining independent and pursuing an initial public offering in the future, the Journal reported.
Google has coveted Groupon because it would give the tech behemoth a slice of the fast-growing online market for local business advertising. That space is also being pursued by Facebook and Yahoo! (YHOO), which also reportedly bid on Groupon.
Google’s stock was rattled last week by reports of the $6 billion bid for Groupon as well as an antitrust investigation by the European Commission.
At $6 billion, the Groupon bid would have been Google’s largest acquisition ever, nearly double the price of its $3.1 billion buyout of DoubleClick.