Google has purchased Groupon for $2.5 billion, according to a report quoting an 'unnamed insider'. Neither Google nor Groupon would comment on the report posted on vator.tv, but the report chimes in with several prevous rumours, and the site claims its source 'is reliable'.

Rumours about a Google offer for discount and offers website Groupon first began circulating on 19 November. Google and Groupon are believed to have been discussing the deal for several weeks.

Groupon is only two years old, but is believed to generate revenue in excess of $50 million a month. It has more than 20 million subscribers in 300 cities spread over 29 countries. The company is currently valued at more than $1.3 billion.

A combination of Groupon and Google would be interesting because Google could offer location-based discounts within Google Maps and Google StreetView, bringing commercial augmented reality a step closer to fruition.