Groupon (GRPN) on Watch as Google (GOOG) Chops Headcount at Daily Deals Site
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If you need another reason why Groupon (Nasdaq: GRPN) might be on the outs, here's another one.
According to reports out Friday, Internet search giant Google, Inc. (Nasdaq: GOOG) is laying off workers in its DailyDeal unit (now known as Google Offers).
VentureBeat said the cuts have come from sales and marketing areas, with no employee safe from cuts (that includes you, executives).
Instead of staying separate, the unit will integrate further into Google Offers. The move might indicate that performance wasn't up to par as a stand-alone unit of Google. So, integration might find deals being shattered throughout Google Maps, AdWords, Android, and other products.
Google acquired Daily Deal last year for $114 million.
Shares of Groupon are spry today, up 2 percent on the session. Google is also up about 1.4 percent Friday afternoon.
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According to reports out Friday, Internet search giant Google, Inc. (Nasdaq: GOOG) is laying off workers in its DailyDeal unit (now known as Google Offers).
VentureBeat said the cuts have come from sales and marketing areas, with no employee safe from cuts (that includes you, executives).
Instead of staying separate, the unit will integrate further into Google Offers. The move might indicate that performance wasn't up to par as a stand-alone unit of Google. So, integration might find deals being shattered throughout Google Maps, AdWords, Android, and other products.
Google acquired Daily Deal last year for $114 million.
Shares of Groupon are spry today, up 2 percent on the session. Google is also up about 1.4 percent Friday afternoon.
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Why would this be bad for Groupon
Huh? on Sep 7, 2012 01:17 PMMark as Spam | Reply to this comment
Your story basically just says that all the people who have been claiming there are no barriers to entry and that Google and Amazon will kill Groupon and Livingsocial are wrong. Facebook and Yelp exited the market. Amazon Local is tiny. And now it appears Google is throwing in the towel. How is this bad for Groupon that they've defeated all these companies and will soon have a duopoly with LS? Groupon stock is up today on this news, BTW.