Report: Groupon working on China inroads

CHICAGO, Jan. 17 (UPI) -- Groupon, the U.S. deal-of-the-day Web site, is in talks with China's Tencent to enter the Chinese market, people knowledgeable about the negotiations said.

The insiders said the agreement likely would involve a jointly branded effort between Groupon, based in Chicago, and Tencent, one of China's largest Internet companies, Crain's Chicago Business reported.

Groupon has been trying to expand its brand globally. Unlike Japan and Taiwan, where Groupon has been able to buy its way in, mainland China likely would require a partnership because of restrictions on foreign ownership, the sources said.

Groupon declined to comment and Crain's said it didn't get a response form Tencent as of Sunday night.