The search giant had offered $5.3 billion, with another $700 million in performance-based incentives.
It appears Groupon's board of directors were divided on the decision to sell, with some new directors believing the company will be worth even more in a couple of years.
Other sources say the daily deal site will instead launch an initial public offering in 2011.
Groupon has 35 million users in 300 cities.
Written by: Andre Yoskowitz @ 4 Dec 2010 2:26