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Call me confused but i am surprised why Google tried buying Groupon if they were coming out with a clone... surely they didnt just develop the clone in the last 2 weeks!
I predict a horrible UI and for it to languish around for a while then be killed off.
Google offers will be a significant competitor to Groupon. They might suck at social, but couple Google offers with Checkout and the adwords network where they can use their own advertising inventory for free to promote this as they have been doing for Chrome and the picture starts to look promising.

The biggest success factor in these group buying services is having a massive audience, and what company is better suited to roll this out than Google?