Google strikes deal to acquire daily deal service

August 2, 2011 - 1:44 PM

SAN FRANCISCO (AP) — Google's latest deal is aimed at helping people find the best daily deals on the Web.

The Internet search leader bought Dealmap, a 15-month-old startup that compiles discount offers from local merchants scattered in markets across the nation.

The financial terms of the acquisition announced Tuesday weren't disclosed.

Google Inc. bought Dealmap just a few weeks after starting its own daily deal service to compete with Groupon and LivingSocial, the early leaders in one of the Internet's fastest growing advertising niches. Google's version, called Offers, currently distributes daily deals in New York, the San Francisco Bay area and Portland, Ore.

Dealmap, based in Menlo Park, Calif., has built a database that lists deals from more than 450 different sources. It says it has more than 2 million users.