sans-serif;width:100%;color:#aaa;background:#fff;float:left;clear:both;font-size:11px;font-style:italic;margin:0;padding:0;">photo © 2008 David Goehring | more info(via: Wylio)Chicago Breaking Business News is reportingthat Groupon has walked away from $5-$6 billion offered by Google in widely reported deals talks. Citing two sources, the report says that the deal did not go through and that the company might still elect to IPO in 2011.

If these reports are true, than this will be the second time Google will have failed to go into local, with Yelp talks also falling through. And walking away from that amount of money is pretty incredible. However the situation could very well still be fluid and the companies could continue to flirt until Groupon either goes public or take perhaps even more money from investors.

This has been a very leaky negotiation, basically negotiating through the press, so this could just be Groupon’s way of playing hard ball through a strategic leak. Your move Google.

Update:We’ve heard from a third source that the deal is in fact off and that Groupon’s revenues are now at $2 billion.

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Authors: Alexia Tsotsis

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