Yahoo Joins Forces with Groupon to Boost Revenue, Global Presence

By Cindy Waxer November 17, 2010

Yahoo has partnered with online discount broker Groupon and more than a dozen other similar services in an effort to boost the company’s earnings, increase ad revenue and strengthen its grip on the more than 500 million worldwide users who visit Yahoo’s website. Yahoo is currently testing offers of local business deals from Groupon and other services in various U.S. cities.

Rumors of Yahoo and Groupon joining forces have been circulating for some time now. Back in October, many analysts speculated that Yahoo was planning to purchase Groupon in a $2 billion deal. However, technology blog TechCrunch quickly put those rumors to rest by reporting that Yahoo wasn’t looking to acquire Groupon but rather developing a partnership with the bargain-smart website.

Latching on to Groupon is a wise move for Yahoo who many believe is vulnerable to a possible takeover. Groupon is reportedly seeking venture funding that may value the company at up to $3 billion. As it stands, Groupon has more than 20 million members. The company was launched two years ago, in November 2008, initially serving the Chicago market only. Groupon also owns several similar international operations, including the Europe-based MyCityDeal, the Japanese service and the Russian

Earlier this year, Groupon raised $135 million in funding from Digital Sky Technologies (DST), a Moscow, Russia-based firm that invests in new Web technologies. Aside from DST's investment, Groupon has also raised a total of $170 million from other companies, include Facebook investor Accel Partners and New Enterprise Associates.

In contrast, Yahoo recently revealed another quarter of less-than-impressive revenue results, according to industry observers. Yahoo reported revenue of $1.6 billion for the third quarter of 2010, a mere 2 percent increase from the third quarter of 2009.

Edited by Tammy Wolf

TechZone360 Contributing Editor

Related Articles

Four Reasons to Reach for the Cloud after World Earth Day

By: Special Guest    4/23/2018

The World Earth Day agenda offers a chance to flip the rationale for cloud adoption and highlight environmental benefits that the technology brings pr…

Read More

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More