Photo: AP Photo
Groupon is in advanced talks to partner with Tencent, the biggest social network in China and the third most valuable internet company in the world, Kara Swisher reports at AllThingsD.Groupon has been extremely aggressive in its international expansion efforts. After all, the daily deal market is a landgrab, and Groupon needs to open as wide a lead with its competitors as possible, and international is an obvious area.
But China has been problematic for US companies which often fail there, and China is known for knockoffs of everything. (There is even a Groupon.cn which is a straight copy of the site and not affiliated with Groupon at all.)
So partnering with Tencent makes a lot of sense. Tencent is the dominant social network in China, thanks to its instant messaging platform QQ, which it monetizes with virtual goods like avatars. Tencent is also trying to make inroads in commerce, with a marketplace called Peipei which goes after e-commerce leader Taobao.
We’ll see how it goes.
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