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This is the most insightful and concise thing I've read about the Google proposal so far. Google offering B$6 doesn't mean Groupon is worth B$6 on its own, it m
by raganwald 15y ago
This is the most insightful and concise thing I've read about the Google proposal so far. Google offering B$6 doesn't mean Groupon is worth B$6 on its own, it means it's worth B$6 to Google.
Google is not Warren Buffet investing in the hope of a passive but safe return on investment. Google was betting that Google + Groupon was worth more than Google + B$6.
- clobber 15y agoHave to keep in mind that the 40%+ that Groupon spends on marketing and customer acquisition largely goes to Google in the form of AdWords spend. Google still wins because of all they make from Groupon from AdWords.
- veyron 15y agoYou mean Google - B$6 + Groupon > Google or Google - B$6 + Groupon > Google - B$6 + investing in other ideas or companies
- raganwald 15y agoI wrote something along those lines originally, but it seemed simpler to leave the details out. I trusted HN readers to fill in the rest :-)