What's The Deal With Groupon?

So I read a while back that Google wanted to pay some insane amount to buy Groupon.  I've used Groupon a couple of times...It depends on the deal you are getting, but it wasn't bad.  I purchased 4 tix for $50 to see the USF Bulls play at Raymond James.  I saved a few bucks over the worst and cheapest seats.  

Here's what I don't get.  How can anyone in their right mind think that Groupon is worth billions of dollars? I've read that Groupon isn't always a good deal for the businesses involved because in some cases a business will offer deep discounts via Groupon as an enticement hoping to get repeat customers.  I don't think Groupon has that kind of customer base.  I probably won't go to another Bulls game unless I can get another Groupon like deal.  

I think that the current economy is driving this from both ends.  Investors are looking for the next big gold rush.  Times are tough and consumers are looking for the best deals.  

-- Sent from my Palm Pre