The Google-Groupon Waiting Game: What It Means

By RJ Middleton
|  Friday, Dec 3, 2010  |  Updated 8:25 AM PDT
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The Google-Groupon Waiting Game: What It Means

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SAN FRANCISCO - SEPTEMBER 28: Google CEO Eric Schmidt speaks during the TechCrunch Disrupt Conference on September 28, 2010 in San Francisco, California. The TechCruch Disrupt Conference runs through September 29. (Photo by Justin Sullivan/Getty Images)

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As far as takeovers go, Google/Groupon shows signs of dragging on too long. It has a nickname: Goopon. Added to that, analysts are taking sides on what the takeover really means.

Is it a good sign that Google is gobbling up an established product and distribution list at a "bargain" price of $6 billion? Or is it a sign that they're slowing down on the initiative tip?

"[Groupon] should hold out for $12 billion or $18 billion," LivingSocial's John Bax told the crowd at Ignition: The Future of Media, according to Business Insider. He was exaggerating a bit, but the point is well taken -- the social commerce model has yet to be defined or valued.

Of course, LivingSocial has a big dog in this hunt, as Amazon is poised to invest $150 million in them.

Thrillist CEO Ben Lerer said that Groupon might be the best-read publication. Period.

The flip side of that argument is that Google might be surrendering its tech supremacy, slowing its innovating and showing a 'crisis of confidence.'

David Kirkpatrick of The Daily Beast points out that the Internet is trending more toward mobile and social -- not newsletters or subscription lists.

The point is also made that a targeted ad via Facebook might be a retailer's best, more efficient, use of advertising dollars.

Google's taken a few hits this year, with the European Union challenging them and a perceived brain drain to other firms.

And the internets have well-documented a similar phenomenon of slowing innovation paired with taking over other firms: Microsoft.

Of course, TechCrunch says Google is building a cloud service; and that Sergy Brin himself is involved in GOOG's social-product development.

Sounds innovative to us.

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