Groupon has reportedly turned down Google’s acquisition offer, Chicago Breaking Business is reporting based on sources close to the deal. As the group-buying startup is based in Chicago, this sounds like reliable news.

Rumors about a possible acquisition have been swirling for several weeks, with AllThingsD reporting that Google offered a hefty $5.3 billion for the startup. Some have balked at that figure – and at the offer itself – as Groupon does not seem to offer any particular technology as part of the deal. But the move makes sense to others who argue it would give Google superb positioning to expand local search, taking advantage of the relationships Groupon has cultivated with local merchants and small businesses.

Indeed, AllThingsD is reporting again this evening, with a story published only moments before the news from Chicago, that Groupon’s annual revenue is around $2 billion. Not too shabby for a company that made a major pivot from its first failed endeavor, the point, two years ago to become the leader in the group-buying space today.

One of Groupon’s major competitors, LivingSocial announced earlier this week that it had received a $175 million investment from Amazon, so clearly the group-buying space is heating up.

In rejecting Google’s offer, Groupon is reportedly weighing an IPO instead. At the least, the company wants to continue its independence.

We have asked Google and Groupon for comment, and will update this story when we have more details.