Mashable broke the story that Google will be launching Google Offers. Google confirmed it later by saying:
Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program. This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways. We do not have more details to share at this time, but will keep you posted.
Google Offers will be a Groupon. Groupon recently rejected an offer from Google to buy them, so I guess that did not stop Google from entering the space.
Here is the Google Offers Fact Sheet:
The big question is how soon?
Forum discussion at Google Blogoscoped Forums.