"It's as over as these things get," the site said, quoting one person close to the situation.
The reasons for the collapse of the talks were not immediately clear, "but it seems to center on the decision by the social buying site to remain independent and perhaps go for an IPO," AllThingsD said.
The two companies had been in direct negotiations on Wednesday, sources told Reuters. But they said the deal could run into antitrust scrutiny.
Groupon said on Wednesday it would not address any speculation about its business, an apparent reference to media reports that Google was close to buying it for $6 billion.
Chicago-based Groupon's global network has more than 33 million subscribers in 35 countries. It sends its members daily e-mails with details of discounts for 200 goods and services. The deals are activated only when a minimum number of people agree to make a purchase, giving Groupon the clout to negotiate steep group discounts on products and services.
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