Worth noting that the Google deal had a big asterisk tied to it. Groupon was burning (and is still) through tons of money. There was a very good chance that the deal could have been turned down due to an anit-trust case or held up in court for 18+ months. Both situations would have crippled Groupon. Going public was just as big a risk as accepting the $6B, the former at least got the early shareholders a pop on their money for 4x what Google was going to pay.
I am still bullish that Groupon can become a sustainable business. They are a brand that the local commerce market recognizes, and with that they can package plenty of other services such a POS systems to diversify their income away from just deals.
Brand value is based on reputation. At a bad enough reputation, brands are abandoned. ClearWire and USWest are good examples. If Groupon's reputation with merchants is as bad as rumored, they have no basis for expansion based on brand. They do have the sales force, but if I'm a local business and a salesman screwed me on a daily deal, I won't take his calls for a POS system either.
I am still bullish that Groupon can become a sustainable business. They are a brand that the local commerce market recognizes, and with that they can package plenty of other services such a POS systems to diversify their income away from just deals.