[raj_o]

Do we know for sure Groupon was offered $6 billion? I doubt Google would be that stupid to offer that much for a startup. Hell, why not just offer VC money and own part of the company for far less money. That story sounds like hype.

Groupon's real problem is their business model is too easily copied. It's also heavy on the service end, where it relies on a person to person business experience, something Google is kind of adverse to.

Around here all I see is advertisements for Living Social. I haven't counted but I am sure there are hundreds of other copy cats out there. It's hard to guess which company is going to have the best business model in a new business type, or really if the business model has staying power at all.

Doesn't this business model attract people that want a great deal for almost nothing? It introduces people to a business they might not know about which is good. But can't people just visit local businesses if they care to get to know them? I don't get the business model at all.