Quote:
Originally Posted by lazycash
I don't think Groupon not accepting the offer had anything to do with them thinking the business isn't sustainable. Yes part of Google's offer had performance incentives for managers, but it was a very small part of the offer, the core amount would have indeed paid to Groupon's owners had they accepted. I believe at the time, Groupon's owners felt with an ipo they could grow larger than a 6b valuation, however I bet they'd gladly accept that offer nowadays.
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actually it had a lot to do with the fact that google would not pay operational transfer cost if regulators denied the deal
It pretty standard when a major company (monopoly) tries to buy a smaller company where there is synergy (google maps) to agree to pay penalty if the deal doesn't get approved by the trade commission.
usually companies get around paying the penalty by carving off parts of the business
google wanted an all or nothing deal, but they didn't want the downside risk if the regulators said no to it.