Groupon A Steal At $6 Billion

Not a day goes by that Groupon isn't in the news. Starting as a small-town one-deal-per-day website, Groupon has quickly grown into a dot-com powerhouse that has excited retailers and consumers alike. All signs indicate that Google Inc.

will swoop in and purchase Groupon this week. The latest estimate is that the company will sell for $6 billion. But is it worth the price? Absolutely.

Furthermore, Groupon offers a Deal Feed that gives users a personalized stream of deals, which are updated throughout the day. Users can view the deals posted by every merchant they follow, and that's not all. They can also take a glance at the recommended deals, which Groupon compiles from user information (such as their shopping habits). Groupon is expected to earn more than $500 million in revenue by the end of 2010. At the rate the company is growing, that number could multiply four or five times in the next three years. As it stands now, the estimated cost of Groupon has more than doubled since Google was first rumored to buy the organization. If Google waits too long, the price could easily rise to $10 billion. Thus, Google shouldn't wait any longer. The search engine giant should do whatever it takes to complete the Groupon acquisition as soon as possible.