The key difference in the two deals is the price ($6 billion for Groupon vs. $175 million for LivingSocial). Of course, Google is aiming to purchase Groupon outright. Hence the astronomical alleged purchasing price. Amazon, which has cash reserves nearing $6 billion, doesn’t quite have the cash to buy LivingSocial outright. Nevertheless, investing in LivingSocial is big move by Amazon because many of these group discount websites are growing fast. In fact, LivingSocial is expected to pass $500 million in profits sometime next year.

Don’t expect this trend to end anytime soon. While Groupon and LivingSocial are the two biggest competitors in a growing industry, there are many emerging group sites with specific niches. Expect more investments and venture capital in these group discount sites in the coming year.

Related posts:

1. Google Set to Launch Groupon Competitor
2. Rumor: Google to Buy Groupon? How This Affects You
3. Groupon Facing Uncertain Future

For those of you unfamiliar with Groupon, it is a great website that allows you to get deals on featured items, based on how many others are also interested in purchasing that item in your area, like a Group Coupon (Groupon). In the last year, Groupon has become one of the top online companies, rising in value in excess of $1 billion! A company doing this well will obviously have copycats, and Google might be making the right choice in buying them out (assuming these rumors are true.

How this helps Groupon and Google
If Google is in the process of buying them out, this deal could be huge for the both of them. Google is a powerhouse when it comes to online marketing, and if they were not to buy them out, they would create some program of its own, that would only take business away from Groupon. At the same time, Google can now integrate the Groupon business model into their own their own, and combine it with platforms, such as Google Places, giving bug and small business alike, a great way to market.

How this helps you
As I stated above Google would likely be integrating Groupon  into its own platforms, such as Google Places, allowing companies to advertise in new areas, as well as offer more Groupon-esque discounts to an even larger audience. Google is obviously the largest online company int he world and one of the most recognizable brands. Google’s size helps reach an even larger audience, which means more discounts for consumers and for you Business owners out there, it is another great Social media outlet for promoting your brand and getting your product out there.

Over the years, Google has purchased many companies, and with the exception of a few (*cough-cough* Google Radio *cough*) they have really grown beyond all expectations and helped revolutionize what we do online. So if these rumors are true, and Groupon is about to become Googleized, then expect to be blown away, and be ready to reap the rewards.

For more information on Social Media Marketing for your and your business, please feel free to contact us and give us a call 877-673-7096.

Thank You, and I encourage you to leave and comments or questions below.

Related posts:

1. Google Set to Launch Groupon Competitor
2. Amazon Following Google’s Lead, Set to Invest in Living Social
3. Groupon Facing Uncertain Future

The questions remains however, will this hurt Bing or help them, in their ever trying state to steal loyal users away from Google. And the answer to this is: Probably help, but It depends on how it is used. Now if you read a lot of my posts you might be thinking to yourself, “Zack is sure indecisive in a lot of his decisions. Why can’t he just pick a side and go with it.” Well let me answer that for you. I choose that position as I like to see what will happen. If Bing decides to integrate the tweets into their normal searches, it can really pollute the search results with what Twitters users are saying, making reliable results hard to find what you are looking for. This execution of their new acquisition would certainly hinder their chances of taking over the Search Engine Giant that is the Goog.

Chances are, however, that the tweets will not be integrated into the search results. Chances are there will be an option on Bing, that allows you to see normal search results or to see what Twitter users are saying on the particular topic you are searching. Chances are, if they do this, they will successfully turn some avid Googlers into hardcore Bing enthusiasts. Will Bing then become the new king of the Search Engine Castle? I would not hold your breath, but it sure would not hurt them.

To learn more about Social Media Marketing and Social Networking, fill out the form on the right to watch our free video series or give us a call at 877-673-7096.

Thank You, and I encourage you to leave and comments or questions below. To learn more about the video series, Medical Professionals should click here and Entrepreneurs should click here.

Article by Zack Zucker, Director of Operations, Turbo Social Media

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