Google buys Dealmap to take on Groupon
03 Aug 2011
Google yesterday acquired online deal-of-the-day start-up company Dealmap just a few weeks after launching its own daily deal service aimed at overtaking industry leader Groupon.
The latest acquisition comes after the Internet giant went on a acquisition spree, acquiring around 70 small firms for $2.7 billion since the end of 2009.
Google is adding Dealmap to its portfolio just a few months after the start up online discount site Groupon, which was recently valued by analysts at over $15 billion, reportedly walked away from Google's $6-billion takeover offer and instead decided to go ahead with its initial public offering. (See: Groupon walks away from Google's $6-bn takeover offer) http://www.domain-b.com/companies/companies_g/google/20101204_groupon.html
Dealmap, based out of Menlo Park, California was launched in May last year and has built a huge database of deals and has already grown to over 2 million unique users.
Dealmap, which competes with Chicago-based Groupon, compiles a range of daily deals from various sources and puts them on an easy-to-see map. Dealmap divides deals into categories such as restaurants, health & beauty, shopping and others and users can search for a deal and where they are located.
Announcing the deal in a blog post, the Dealmap team said, "Since launching The Dealmap in May 2010, our team has worked to build a great product where people can find and share all the best local deals, all in one place."
