Google strikes deal to acquire daily deal service

Google Inc.'s newest offer aims to help folks locate the very best everyday deals around the Internet.

In its latest acquisition of talent and technologies, Google has purchased Dealmap. It is a 15-month-old startup that compiles low cost provides from local merchants scattered in markets across the nation.

Financial phrases of the acquisition announced Tuesday weren't disclosed. It's the newest within a flurry of acquisitions that Google has created to grow its Net empire into promising new markets. Given that the end of 2009, Google has put in a lot more than $2.7 billion purchasing more than 70 businesses.

On this case, Google is attempting to become a larger participant inside the quickly increasing specialty of distributing daily bargains from nearby merchants around the nation. Groupon and LivingSocial have emerged as early leaders, but countless rivals are actually vying for any share. Google, because the owner of the Internet's most well-known investigation engine and most profitable advert network, looms as 1 of one of the most imposing entrants.

Google is incorporating Dealmap to its arsenal just a couple of weeks following starting its own daily offer services. Its model, named Provides, at present confines its bargains to New york, the San Francisco Bay region and Portland, Oregon, but Google ideas to create a lot more cities. The company developed its service following Groupon turned down a $6 billion takeover supply final 12 months.

"We've been thrilled with the early success of our commerce offerings, and we think (Dealmap) can aid us create even far better items and solutions for consumers and merchants," Google spokeswoman Katelin Todhunter-Gerberg mentioned.

Groupon, that is based in Chicago, is now pursuing an preliminary public offering of stock that's expected to be finished in September or October. Though it's only three many years aged, Groupon currently is on speed to generate much more than $2 billion in yearly revenue ?a a threshold Google did not eclipse till its sixth calendar year in organization.

Each Groupon and LivingSocial have already been aggressively expanding in an attempt to create on their early lead inside the day-to-day deal market. LivingSocial broadened its reach in Asia on Tuesday with its own acquisition of the South Korean offer website called TicketMonster.

Dealmap, that is primarily based in Menlo Park, California, has built a database that lists offers from far more than 450 diverse sources. It says it's got much more than 2 million customers.