Some said Groupon execs were unwise to turn down Google's $6 billion offer, but the deal-finder may be proving its individual worth, as it is poised to raise close to $1 billion in a round of venture capital funding. As Groupon gets money to fuel its development, marketers may not want to miss opportunities to reach consumers via this growing platform.
Information Week reports that the deal-finder has filed incorporation papers in Delaware authorizing it to raise $950 million. The source says this figure has estimated values for the company reaching as high as $7 billion.
As Brafton reported, Google hoped to buy Groupon for $6 billion, which many in the online marketing community speculated would have been too high of a ticket price. However, it now seems Google knew what it was doing (as did Groupon in turning the search giant down). The funding comes as local search and commerce are on the rise.
A recently released Nyppex study suggests Groupon is worth just $4.8 billion, however, this figure still made it one of the fastest-growing enterprises in the firm's report. Its worth had quadrupled since June.
Marketers may consider offering deals through the rapidly rising online coupon site to raise brand awareness in 2011. Groupon has more than 35 million registered users and counting. Plus, the site recently launched a BlackBerry app to help brands catch foot traffic from on-the-go consumers.