Wedbush added to the continuing rumors of a Google (NASDAQ:GOOG) acquisition of Groupon, citing a Vator.tv report they paid $2.5 billion for the property.
Assuming the rumors are fact, Wedbush says it would be "very positive as it bolsters Google's Local presence, enhances its Social Graph data, and better positions Google in its battle with Facebook."
They added Google's "connections to millions of local businesses around the world through Google Places and Google AdWords, Google clearly has the ability to accelerate Groupon’s already torrid growth."
Google closed Monday at $582.11, losing $7.89, or 1.34 percent. Wedbush maintains a "Neutral" rating on them and a price target of $575.
Great article and an even better opportunity for Google. It'll really help them out in the local business market. And with Google's infrastructure behind them, perhaps Groupon's site will be a little more stable and stop crashing whenever there is a good deal or a lot of publicity. I think the $6B number being discussed is a fair number given the situation, despite what they naysayers might think. Here's to hoping this one goes through.
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