Google is reportedly interested in acquiring shopping deals website Groupon, and is willing to spend well over $3 billion to do so.
Sources close to the discussions say Google has been meeting with Groupon over the terms of a potential purchase, All Things Digital reported.
The prices being discussed are significantly higher than the $2 billion to $3 billion that insiders say Yahoo offered in unsuccessful merger talks last month.
The US-based Groupon is a deal-of-the-day website that operates in the Americas, Asia and Europe. It currently earns revenue of more than $50 million per month.
The company is believed to be seeking a venture funding round that would value it at roughly $3 billion. The most recent round, in April, left the company worth $1.3 billion.
All Things Digital's sources expect that Google could have competition for the purchase of Groupon.
Only Microsoft, Amazon and eBay are likely to have the scale and potential synergies required for a successful acquisition, they said. While Groupon's portfolio may also be a good fit with Facebook, the social networking site may not yet possess the required cash reserves and stock.
Google, which is coming under increasing scrutiny from US regulators, may also have difficulty gaining the required approvals for a deal.
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