Google readies Groupon competitor

Google is preparing to launch its own Groupon competitor called Google Offers.

The venture"is a new product to help potential customers and clientele find great deals in their area through a daily email,"according to a fact sheet first published byMashable.

A Google spokesperson confirmed that the Internet giant was actively recruiting businesses for a daily-deals offering.

"Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program,"the company said in a statement."This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways. We do not have more details to share at this time, but will keep you posted."

With the effort, Google is playing catch up in the nascent but profitable social-buying sector. The Internet giant reportedlytried to buy market leader Grouponfor as much as $6 billion but was rebuffed in that effort last month. Groupon, which is rumored to be doinging $2 billion a year in revenue, has since increased its muscle by raising $950 million in financing, giving it a value of about $6.4 billion.

In addition to Groupon, Google will have to contend with Amazon.com-backed LivingSocial, which recently made headlines and fans by selling more than a million $20 Amazon gift cards for $10 each. Living Social said last month it is"currently booking revenues of more than $1 million a day on average and is projected to book well over $500 million in revenue in 2011."

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