Why a Google x Groupon Deal Makes Sense (via Huffington Post)

What Groupon would add to Google is a completely different market and revenue stream—one that is not dependent on advertising and that, unlike Google Books or YouTube, is not currently mired in massive copyright litigation. Groupon is already profitable and makes money from selling stuff—albeit, coupons.

First, if Google does one thing well, it’s technology. It can provide Groupon with the technical support and server capacity to ensure its system does not crash with a popular sale—as, unfortunately, occurred with the Nordstom offer, which brought Groupon’s site to a halt for a good part of the day. Second, and more importantly, Google can immediately provide Groupon a seasoned legal department to help Groupon protect its intellectual property and to develop a coherent strategy to respond (or not) to all the copycat sites—or “Groupon clones”—that have sprung up in the U.S. and around the world. Listening to Groupon CEO Andrew Mason describe the company’s current IP strategy makes it sound somewhat like a work-in-progress. But, if Groupon goes along with Google, Mason could focus his many talents on developing the amazing site of Groupon, while leaving the more mundane task of protecting intellectual property to the legal department at Google. And, of course, the $5.3 billion translates into a lot of sense, too.

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