renoirm - 3:02 pm on Dec 10, 2010 (gmt 0)
I think you guys are thinking the acquisition had anything to do with the deals or the technology. Both are worthless. The acquisition was purely a play for the sales team and the fact the company was cash positive. Groupons has 2000 sales people who work directly with small business. How long would it take Google to hire that? By the time they do they'll have lost a huge footing to both Groupons and Yelp (100 sales people estimated).
The math is this : Opportunity Cost for Building Sales Team + Yearly Revenue * Multiple(4 - 6 on Earnings) = $6 Bil