In a three-story building in Palo Alto, Calif. — formerly occupied by Danger, the developer behind the T-Mobile Sidekick — Groupon has been trying to build out a Silicon Valley technology center, one acquisition at a time.

The pursuit was kicked off two years ago with the purchase of mobile app development shop Mob.ly. Mihir Shah, the company’s CEO, started recruiting for the social buying company, and then became the Groupon’s VP of mobile.

Since then, there has been a hodgepodge of acquisitions, including Campfire, which builds chat, calendar and media-sharing tools, as well as Zappedy, which makes a platform for merchants to redeem Internet-based offers more easily.

Last week, it continued with Adku, a low-profile San Francisco start-up that helps e-commerce retailers fine-tune their recommendation engines using external factors, such as whether it is hot or cold outside.

None of the teams have been extremely big or expensive, but Groupon insists that they already are having a major impact on the company.

That may be hard to believe in a company of more than 10,000 employees, most of which are salespeople who are not working on technology.

But Adku’s co-founder Carlos Whitt, who is joining the company along with five others from his team, said the entrepreneurial vibe in the building is “ridiculously exciting.”

“The opportunity, the innovation and entrepreneurs are all there,” he said. “It’s a good intersection.”

Still, Groupon has not been able to attract every entrepreneur it pursues. It had been actively trying to buy other social start-ups, such as Gowalla. That particular deal went to Facebook. Another would-be Groupon acquisition target, Clever Sense, was won by Google.

No matter, according to Mob.ly’s Shah, who said Groupon is actively evolving beyond a daily deals service into a company that builds a set of key marketing tools for local merchants that increases sales, cuts costs and boosts productivity.

Some of the early tools include online calendars to make it easy for spas or gyms to book appointments online, and rewards programs that allow merchants to identify loyal customers who return and spend a lot of money.

Groupon also recently revamped its merchant center, where its customers can manage their daily deals and other programs in an online dashboard.

Shah said the idea is to create a marketing suite that makes small businesses more efficient and productive.

“We never want to stand still and be a big company,” he said.

But the big question is whether those tools will be sticky enough to keep merchants coming back to offer new deals, which is where Groupon gets all of its revenue from. That’s because most of the new tools are expected to be given away for free and not generate any additional income — at least for now.

It will also have to be enough to keep away other close competitors, such as LivingSocial, Google and Amazon.

The ability to spur innovation and keep ahead of rivals will be on the minds of analysts when Groupon reports its first financial results as a publicly held company this afternoon.

Wall Street is expecting the company to report three cents per share profit on revenue of $475 million in its fourth quarter earnings, according to Thomson Reuters.

That’s up from $430 million in revenues in the third quarter and will be Groupon’s first profitable quarter in nearly two years

In particular, analysts will be listening for updates on some of the company’s core programs, such as Groupon Now, which is its mobile product that allows consumers to purchase deals minutes or hours before redeeming them based on their location. Other metrics may be shared regarding loyalty and retention programs.

This is also Groupon CEO Andrew Mason’s first big chance to speak to the investment community since the end of the company’s quiet period (which he wasn’t really good at keeping, anyway).

Groupon’s stock increased nearly three percent yesterday to close at $24.19, which is just above its IPO price of $20 a share.

Amazon, which has a 31 percent stake in the second-largest daily deals company, released the figures as part of its quarterly filing today with the Securities & Exchange Commission.

It said LivingSocial’s 2011 net loss totaled $558 million on revenues of $245 million.

The footnote was first reported by Geekwire’s Todd Bishop this morning.

Chicago-based Groupon, which is the daily-deals leader, will report 2011 results next week. But based on its results for the nine months ended Sept. 30, it is still much larger. In the nine-month period, Groupon recorded a net loss of $238 million on revenues of $1.1 billion.

LivingSocial was always presumed to trail behind Groupon by a fair margin, but now we are able to see exactly how wide the gap is.

However, a source close to LivingSocial said the numbers reported by Amazon are somewhat deceiving. They do not reflect the full year of international results, including the results from some fairly large acquisitions, such as Ticket Monster in South Korea.

The source also said the losses are artificially high because of non-cash expenses, such as stock-based compensation, which soared as the company increased its employee base from 500 to 6,000 in the past year and made 11 acquisitions.

According to the source, the company’s gross bookings, which include both the merchants’ and LivingSocial’s take-home sales, totaled between $750 million and $800 million, not including some foreign investments.

In contrast, Groupon’s gross bookings for the first nine months of 2011 totaled $2.8 billion.

A LivingSocial spokesperson declined to comment.

LivingSocial’s operating expenses, which totaled $686 million for the full year, also reflect steep marketing costs that were incurred early on to acquire thousands of new users.

Groupon was criticized for making those same investments while it was going public.

In the filing, Amazon also revealed that the book value of its 31 percent stake in LivingSocial was set at $208 million, up from the $192 million reported in Amazon’s previous filing.

That implies that the company’s valuation increased over the past year. It is now presumed to be valued at somewhere between $4 billion and $5 billion. Groupon’s public market value is hovering around $13.5 billion.

Despite LivingSocial’s steep losses, the Washington, D.C.-based company is not running out of cash. In December, the company secured $176 million in new funding. The round, which could swell to as much as $400 million over time if new investors join in, is expected to be enough to delay the need for an initial public offering.

Gupta joined the company 18 months ago after Google acquired Jambool, a virtual goods payment platform where he was a founder and CEO. More recently, he’d been one of the leaders on the payments team, overseeing Google Wallet and reporting to Osama Bedier, Google’s VP of Payments.

“I can confirm that Vikas has left Google and we wish him all the best in his future endeavors,” a spokesman said.

Jambool’s product, Social Gold, was rolled into Google’s payment products and is being used for in-app purchases on both Android Market and Google+ Games.

According to Gupta’s LinkedIn page, he joined Google in August 2010 and held the title of head of consumer payments. Jambool reportedly was purchased for $55 million before any additional earn-outs. Prior to founding Jambool, Gupta worked at Amazon.

Gupta’s departure is the second management move made in the Google Wallet ranks over the past week.

A spokesperson declined to say if the division was undergoing a wider restructuring, but last week, I reported that Google’s VP of Commerce Stephanie Tilenius was moving into a more global position. And, as part of that, Bedier will be taking on a larger role within Google Wallet, though his title will not be changing.

The Wallet is Google’s mobile payments strategy that allows users to tap their phone at the register to pay using near field communication technology. The company has already successfully formed alliances with both banks and retailers, and is leveraging its vast install base of Android users.

Today, it is live with some merchants, although it does face some challenges.

Currently, it only works on one phone from Sprint, and both consumers and merchants will most likely have to upgrade their hardware for it to work. Additionally, some carriers, such as Verizon Wireless, have decided to disable Google Wallet on phones they are shipping. Other carriers, which are part of a mobile wallet joint venture called ISIS, are expected to follow suit, effectively limiting access for many U.S. consumers.

More than six months after hosting a flashy launch event, the business may be getting a lot harder than it originally looked.

Today, the daily deals site confirmed it has acquired Bay Area-based Mertado, a social shopping company that helps consumers discover new products. The acquisition was first reported by TechCrunch.

In a statement provided to All Things D, Julie Mossler said: “Groupon is excited to announce it has purchased Mertado.com.”

Terms of the deal were not disclosed; however, Mossler said several members of Mertado’s staff will join Groupon, including founders Mehul Shah, Rajiv Bhat and Vijay Chittoor, who is also the CEO.

Groupon was interested in Mertado’s expertise in the social commerce space, including the launch of Mertado TV, which combined video content with products. In a post on Mertado’s Web site, the company said it was no longer accepting new registrations and will officially shut down on Feb. 28.

Going forward, it directed Mertado customers to Groupon Goods, which offers an eclectic mix of physical products for sale, like kitchen gadgets, consumer electronics and the Shake Weight.

Last month, as Liz Gannes reported, Groupon acquired Campfire Labs, which will head up the company’s social efforts. Before that, Groupon had been actively trying to buy other social start-ups such as Gowalla, which was acquired by Facebook, and Clever Sense, which went to Google.

The yellow-handled hammer, which the eBay CEO purchased at Home Depot using PayPal, signals that the company’s plans for entering the mobile payments business has entered the construction phase.

In an interview yesterday, Donahoe provided a few details about the company’s Home Depot trial and how it would expand from five to 51 stores across the country over the next week.

He also talked about his own experience of buying the tool earlier that morning. (Seen at right: Donahoe wielding his hammer.)

The company also announced fourth-quarter results yesterday, solidly beating both the company’s internal guidance and analyst expectations.

One of eBay’s big initiatives over the past year has been to find ways to work more closely with physical retailers by providing them with the technology they need to operate more efficiently online and offline. Over the past year, that has included buying 13 companies, for a total investment of $3.4 billion.

“We are right at the intersection of something that’s really cool,” Donahoe said. “This isn’t something that everyone sees, like social networking three years into it, when only the early people knew about it.”

What everyone is not seeing, he explains, is how retail and payments are two massive industries that are “at an inflection point where they will go through dramatic change.”

One major opportunity is payments being made at the cash register, and arguably many others see it, too, including Google, Visa, MasterCard and the wireless carriers, which are all working on their own solutions.

Interestingly, Donahoe was willing to put a price on it — and it’s huge.

If eBay is able to capture just 2 percent of the sales occurring at the point of sale, it will be able to double PayPal’s $70 billion business today. If they capture 4 percent, they’ll triple it.

Of course, that will take some time.

This year, eBay is focused on learning and testing out the technology in several trials; then, in 2013, it will begin to scale the business. In 2012, the company is not even factoring in a lift from point of sales in eBay’s revenue guidance.

The company’s big test will start later this week, when it expands its trial with Home Depot from five stores in the Bay Area to 51 stores in the Bay Area, Atlanta and Omaha.

Everything continues to be on track, despite the unexpected departure of PayPal President Scott Thompson. Thompson shocked Donahoe right after the New Year with the announcement that he was leaving to become CEO of Yahoo.

Donahoe declined to give an update on his plans to replace Thompson, saying that he was fine with serving the interim role in the meantime, and relying on the rest of the team PayPal has in place.

So far, Donahoe said, the mobile payments technology works flawlessly, based on his own experiences, but there’s still some additional scenarios they will have to consider.

Yesterday morning, he drove to a store in San Jose, where he consciously left his wallet and phone in the car.

He walked through the aisles to find a hammer and tape measure, and then went to check out, where the terminal gave him the option of checking out with PayPal. He entered his mobile phone number and PIN, and the transaction was completed, with the receipts sent to his phone and email.

“It was faster than swiping the card,” Donahoe said. “This is an advantage that PayPal has. No one else can do it with a mobile number and PIN. There was no fancy whiz-bang technology.”

Customers will also be given the option of paying with a PayPal credit card.

But not all the pieces are in place yet.

Coming soon: Users will be able to store their loyalty cards in their PayPal wallet, and will be able to receive personalized offers based on their shopping habits.

Also, it’s worth noting that while Donahoe checked out easily, there will be a learning curve for others. In advance of going to the store, users will have to associate a phone number and PIN with their account, and enable their account for in-store checkout.

Right now, there’s no contingency plans for if a person doesn’t have a PayPal account, or if it’s not set up. In fact, a very small percentage of the more than 100 million PayPal users have likely done that.

“That’s exactly why I say this is the year for trialing and learning,” Donahoe said, appropriately adjourning the interview with a bang of the hammer.

In the past seven months, Fab has grown rapidly, registering 1.65 million users, who have purchased 750,000 products.

It now plans to grow even faster, with the help of this acquisition.

Both companies have a similar mission: To bring independent artists and craftsmen, who make aesthetically appealing and sometimes out-of-the ordinary items, to a large marketplace.

Fab.com does this mostly for home decor, and New York-based FashionStake does it mostly for fashion and apparel. The sites have the flavor of a Gilt Groupe, which sells high-end fashion at a discount, except they offer more undiscovered brands, at more reasonable prices.

In a blog post, Fab CEO Jason Goldberg said FashionStake co-founders Vivian Weng and Daniel Gulati will join the Fab company.

Goldberg did not disclose terms of the deal, but it’s possible that he tapped into a large cash reserve, which includes a $40 million round of capital raised last month from Andreessen Horowitz and others.

FashionStake, which launched in September 2010, has received investments from a number of players, including Battery Ventures, Forerunner Ventures and Gilt Groupe co-founder Alexis Maybank.

Last year, FashionStake acquired Moxsie, another retailer of independent fashion.

CNBC first reported the rumor during an afternoon broadcast, but an official announcement is expected after the markets close. A Double Down spokesperson declined to comment.

UPDATE: The two companies have confirmed the transaction. The deal includes $250 million in cash, $85 million in retention payments over the next two years and up to $165 million in cash payable over the next three years subject to Double Down meeting certain targets.

As it turns out, casino games on Facebook have quietly been ringing up a pretty healthy business.

Even though gambling isn’t legal online — yet — players are still finding slots, cards and other casino games addictive. Most of the games are free to play, and of course, players don’t ever get to cash out their winnings.

DoubleDown Casino has 1.3 million daily active users and 4.7 million monthly active users, according to AppData.

While that doesn’t rank it as one of the most-played games, it is frequently mentioned as one of the most popular and could be one of the more profitable.

Facebook named DoubleDown Casino as the fourth-most popular game of 2011, based on user reviews, and in October, I reported that DoubleDown was generating $140,000 a day in revenue, according to sources close to the company.

DDI’s game on Facebook is like visiting the Las Vegas strip.

Over the past year, it has added several casino games to its app, including blackjack, slots, video poker and roulette.

The deal closely follows Caesars’ purchase of Playtika, an Israeli game company known for its Facebook title, Slotomania. Caesars purchased the company in two stages, the first of which was rumored to be sold for up to $90 million.

With both Caesars and IGT putting their hats into the social gaming ring, it’s hard not to wonder if — or when — gambling will become legal on the Internet. Clearly, they are betting that Facebook could be one of the dominant platforms where it takes off first — if not in the U.S., then maybe in one of the more than 30 countries where Double Down operates.

IGT designs, develops and manufactures gaming machines, making it a strong candidate for merging legal gambling with online efforts, especially now with the expertise of Double Down behind it.

DDI was co-founded by Greg Enell and Cooper DuBois. The two founders used the profits from a previous company, Pickjam, to fund the Facebook game start-up.

Enell will continue the company’s operations from its Seattle offices, where it has 70 employees.

As the father of eight kids — now all between the ages of 12 and 21 — he knows a thing or two about the importance of finding the perfect place. (Note: Kaufer delicately calls family trips “adventures,” while getaways with his wife are “vacations.”)

Since then, TripAdvisor has become the online go-to destination for reviews of hotels from Barbados to bed-and-breakfasts in New York City.

In 2004, Kaufer sold the company to IAC for $210 million, setting off a somewhat complicated operating journey. A year later, TripAdvisor spun out of IAC as part of Expedia. It remained a division within the online travel agency until last month, when it broke off into an independent publicly held company.

Today, the Newton, Mass.-based company has 1,100 employees, attracts more than 50 million unique visitors and has published more than 60 million reviews. It trades on the Nasdaq under the ticker symbol “TRIP,” while Expedia continues to trade under the symbol “EXPE.”

Kaufer talked to AllThingsD about being an independently traded company, and about the media company’s prospects for growth:

AllThingsD: What is it like to be out from under Expedia’s wing?

Stephen Kaufer: There was a joke when we were spun out as part of Expedia from IAC. People asked me, “What’s your vision for TripAdvisor?” I would always say, “I want to be bigger than Expedia,” and people’s response always was, “That’s what the little brother might say.”

A year or two ago, we passed Expedia in comScore metrics, and are still experiencing growth. It’s a free service that’s valuable. It’s worldwide. TripAdvisor is in 21 languages, and three-fourths of the traffic comes from outside of the U.S.

Now that you are out from under Expedia, do you have more flexibility on where you send leads that are generated from people reading reviews on TripAdvisor?

Under Expedia, we had no obligation to send traffic to them … That never happened, and we were allowed to run independently. But at the end of the day, they [competitors] knew their marketing spend was going into Expedia’s pocket. That’s the most exciting thing. We are now completely independent. Expedia now owns no stock, so when I talk to Orbitz or Priceline, these folks can now partner with TripAdvisor without any hint of helping to fuel the competitors.

Why the spinoff now?

It was announced back in April, but basically there was a view that there was a class of investors that liked a pure Internet category leader and a fast-growing media company like TripAdvisor, and there’s another class that appreciates Expedia, which is in the dominant online travel agency position.

We were blurring the two when they were together. It gives Wall Street the opportunity to invest in either, and each company will find its own set of investors.

Do you think Wall Street is correctly valuing TripAdvisor? (The stock failed to come roaring out of the gate.)

No. But I’m not complaining. I think Wall Street, over the next couple of quarters, will appreciate how both companies perform as independent companies. The numbers have been a little hidden because they were jumbled together. … They’ve never seen TripAdvisor operate independently. They ask, “What will you do differently? How will things be the same?” Watch us, and I think you’ll like what you see.

Will you grow mostly organically, or through M&A?

We have a good track record on acquisition and product innovation.

The last few acquisitions, you saw a focus on our strategic priorities: A mobile company, a social company, two vacation rental companies and a company in China. Our four key investment areas that we called out are vacation rentals, mobile, social and geographic expansion.

In many ways, TripAdvisor was one of the original social networks, where users shared information on their vacations. Now you see Facebook getting into the space with Facebook Connect and other initiatives, too.

Everyone feels like being able to get travel recommendations from their friends is a natural evolution for getting a better recommendation, period.

There’s a couple of different angles. Some social travel companies are focused on making planning a group trip easier. No site out there has scale and does that well, and we don’t do that now. Facebook is a great platform to do it on, and it may be interesting to us in the future.

Our focus is leveraging the friend graph on Facebook and our rich content to give someone the experience of seeing recommendations or ratings from friends.

We love the concept, and we are furiously building up our own product offering to make it more valuable. If it’s not too early to call someone a leader, we are clearly it, because we have the content and the friend graph. We aren’t a site that’s based on Facebook, which is an advantage, because you can do anyting you want to do on the Web or the tablet or mobile.

What about Google moving into travel?

They have a couple of different approaches. They have Google Places, which reviews everything; and they have Google Hotels, which is a hotel finder; and then Google Flights, to help you find the best fare.

With Google Places, they still can’t seem to generate enough high-quality reviews to be useful. They compete with Yelp and us, and I’ve yet to be concerned. I was concerned about Google Flights — a lot — before they launched, but you cannot book through an online travel agent like Expedia — only directly through the airlines for now.

It’s an incomplete product, so I still use TripAdvisor flights, or go to Expedia or Orbitz. They get better results, and maybe aren’t as fast, but more information is still better.

They say they want to include online travel agents, but the airlines won’t let them. … Don’t mistake my tone for being sympathetic to Google on this one.

What about vacation rentals? HomeAway went public last year.

After HomeAway, there’s not that much.

We agree it’s a great market, and it deserves to be online. It helps consumers and there’s a need to bring a trust element into the equation. Folks who have tried it have liked (renting homes), and a whole lot of people haven’t tried it, because a hotel is all they’ve ever tried.

If they are reading hotel reviews, but I see that you are trying to stay seven nights in Orlando, I might say, “Did you know that you might be able to save money and get a private swimming pool?” They never would have thought of that as an opportunity, but there’s lots of great opportunities in Orlando and tons of other cities.

HomeAway dominates the category, but there’s plenty of room for a second, third and fourth.

I’m surprised that already three-fourths of your traffic comes from outside the U.S.

Yes, and that portion is growing. We have offices all over the globe, and our biggest investment opportunity is in China. We purchased a metasearch site for air, hotel and train in China. We view international growth as a tailwind to the business.

So what’s your price target for the stock? It’s currently trading around $25 a share.

I’m looking at how I can grow the business over the long term, and that’s why we are making some of these investments. I might be ahead of it, or other folks ahead of me, but I’m a nuts-and-bolts operator. I like to build stuff, and getting TripAdvisor to the next level of functionality and awareness is my priority — not the stock price.

The partnership understandably ended once Microsoft’s big search rival, Google, acquired The Dealmap in August.

“We can confirm that Bing is no longer partnering with The Dealmap and is now partnering with local and daily deal aggregator 8coupons,” a Microsoft spokesperson said. “We’re excited about the partnership with 8coupons and to be able to offer our customers access to great deals and discounts from across the Web — all in one place.”

A spokesperson for 8coupons also confirmed the partnership, adding that it started to replace The Dealmap a couple of weeks ago.

Rather than build a Groupon copycat as Google and Amazon have done, Microsoft has decided to partner with an aggregator that collects offers from various providers around the Web. Deals delivered by 8coupons come from Restaurant.com, Yelp, LivingSocial and GiltCity, among many others, as shown on the Bing Deals homepage.

Google’s purchase of The Dealmap was relatively small, especially compared to its failed $6 billion offer to buy Groupon. So far, The Dealmap is being used for the underpinnings of a pilot project that Google Offers has rolled out in the Bay Area.

In San Francisco, Google works with more than a dozen deal providers so that it can offer a variety of deals every day. It believes that in order to have relevant offers for all types of consumers, you need a lot of good deals, not just one a day.

I’ve asked Apple for input; last week, when news of the potential deal first surfaced, the company declined to comment.

If this is a done deal, it would follow an M&A pattern that Apple has pursued for some time. Though the company has enormous cash reserves, it has generally made smallish (by its standards) deals for technology vendors it is already using — in this case, it is using Anobit’s flash memory chips in its iPads, iPhones and MacBook Airs.

But Apple spends much more cash — billions a quarter — locking up inventory for the raw components than it uses in its gadgets, like flash memory or display screens.

That brings the price tag for Adobe’s two-year ad business shopping spree to $2.4 billion. The bulk of that comes from Adobe’s 2009 acquisition of Omniture for $1.8 billion; it has also recently picked up Auditude and Demdex.

Adobe’s appetite for ad technology has been good news for a handful of investors who have been betting on the sector. In the case of Efficient Frontier, the deal is a big win for Mitsui & Co., Redpoint Ventures and Cambrian Ventures, who put less than $15 million into the start-up.

But while lots of VC cash has gone into ad tech in the past few years, there haven’t been a ton of big exits.

Beyond Adobe, the only other active buyer has been Google. And industry executives say that some ad tech firms looking for more funding are having trouble getting the dollars they want.

A new start-up, Openspace, is launching a physical store where consumers can visit and discover the latest mobile applications.

“If your iPhone has a problem, you take it to Apple. If your Android tablet has a problem, you take it to Verizon, AT&T or Best Buy,” said Openspace founder Robert Reich. “But if you have a question about which camera app would be great for taking pictures this weekend on the slopes, where can you turn?”

To help solve that problem, Openspace opened its first physical storefront last week in Boulder, Colo. Open six days a week, the store is staffed by “App Gurus” who make recommendations and try to eliminate “app-rehension.” (Their joke, not mine.)

Previously, Reich founded Boulder-based OneRiot, which uses social data to make mobile advertising more targeted. The company was acquired by Wal-Mart in September.

Openspace is just getting off the ground, so all the details haven’t been nailed down — like how the operation will make money. But in the next year it hopes to partner with developers to take a percentage of sales that result from applications promoted in the store.

Consumers can also do things the old-fashioned way and visit the company’s Web site to get recommendations. On the site, the company categorizes applications by interests — many of which won’t be found on iTunes — including such nontraditional subjects as Occupy Wall Street, zombies or “games a 10-year-old girl will enjoy.”

Developers often complain about how difficult it is for their applications to be discovered, and frequently pay for advertising or third-party promotion. So it’s possible that a physical app store could be one more way to get the word out.

Whether Openspace will be able to make enough money off referrals to offset the high costs of real estate and full-time staff will be the bigger question.

Additionally, the San Francisco-based company is announcing this morning that it has acquired Chatterfly, a mobile platform focused on creating loyalty, and DoodleDeals, a deal site focused on the East Coast markets that has distribution deals with Time Out New York Kids, What to Expect and Amazon-owned Diapers.com.

Terms of the deals were not disclosed.

Altogether, Plum District now operates in 27 markets and has a network of 300 salespeople — the company calls them “mom consultants.”

Plum District uses a multilevel marketing sales approach to source its deals, meaning that the same moms who are receiving the deals can also act as its salesforce (a la Mary Kay). The incentive for sourcing deals on anything from spa discounts to family outings is making money, of course.

The third round of funding was led by General Catalyst Partners; new participants in the round include Comcast Ventures and Duke University, with existing investor Kleiner Perkins Caufield & Byers also contributing. To date, the company has raised $30 million.

As part of the funding, Raul Vazquez, former president and CEO of Walmart.com, was named to the board of directors.

The capital will be used for geographic expansion, enhancing customer experiences and investments in technology.

The round also shows that while Groupon and LivingSocial may be the mainstream leaders and are capable of raising hundreds of millions of dollars, including yesterday’s news from LivingSocial that it had raised half of a $400 million round, there is still interest in companies that are focused on a specific niche.

Other more mainstream providers like BuyWithMe were unable to attract more financing. BuyWithMe was ultimately acquired by Gilt City at a massive discount.

Other companies are targeting mothers as well, including FamilyFinds in Los Angeles and even LivingSocial, which has a family-focused vertical.

What an amazing coincidence.

On the very day Yahoo’s board is considering actual bids from two private equity firms interested in deals to buy close to 20 percent of the company for between $16.50 and $17.50 a share, comes a spate of eerily similar breathless media postings that there’s another bid in the making for $20!

That’s totes better, right? I mean, how can Yahoo’s directors accept a real live lesser-priced bid now when there’s a prettier one in the fog just ahead?

No, really, it’s there — if you squint really, really hard.

Except it’s not even close, when you actually check with two of the key members of the group of alleged buyers, which would apparently be Blackstone, Bain Capital and Yahoo’s Asian partners, Alibaba Group and SoftBank.

Sources close to Blackstone and Alibaba said while there have been talks, which have been previously reported weeks ago here and elsewhere, there is no bid in the offing that is close to fruition and at that price.

In an unusual public statement, in fact, Alibaba’s John Spelich said flatly: “Alibaba Group has not made a decision to be part of a whole-company bid for Yahoo.”

This from a company whose voluble CEO Jack Ma is prone to making giant and noisy speeches to signal his interest in finding a way — any way — to get back shares of the Chinese Internet giant from Yahoo.

Not this time, and several sources close to Alibaba reiterated that it was nowhere near close to any bid as yet and that a price is still up in the air. In addition, sources added, Alibaba might decide to work with another PE group, such as Providence Equity.

In addition, sources noted that if Alibaba could strike an adequate deal with private equity bidders to get a large chunk of the stake back, it would be highly preferable to a hostile takeover of Yahoo that could end in tears and little else.

“The threat of a takeover is more useful than the damage an actual takeover would cause for everyone,” said one person close to the situation. “No one wants this to be unfriendly.”

So why the rumors — doubtlessly being spread around by hopelessly cynical Wall Street types interested only in stock manipulation — surfacing today?

Simple: To get some easy-to-play media outlet to bite, report it as speculative fact and cause the stock of Yahoo to take flight tomorrow.

Hey, it could happen!

Sadly, this junior-league trick has already worked — Yahoo shares were up a dollar to $16.72 in after-hours trading tonight.

It is likely to go even higher tomorrow, which could cause the board of Yahoo to delay accepting either of the partial bids from Silver Lake or TPG Capital, even if they were the best thing for the company and its employees.

Except that the job of the Yahoo board is to evaluate what’s before them and not what is perhaps, someday, soon, wait-by-the-phone, really soon, I promise is going to be delivered.

In fact, several sources noted that it’s not clear if the Yahoo board has even asked for parties to submit whole-company bids yet.

When and if Yahoo’s board does that and if something better actually does come down the pike, with a much fatter price tag of $20 or more, then the directors can mull that over.

That would be the prudent thing to do for the company, its employees and its shareholders, even if Yahoo’s stock gets a temporary lift now.

Maybe I am just a hopeless Silicon Valley romantic and not a hardened Wall Street M&A type, but the survival of Yahoo is the real point here, rather than the lining of bankers’ already fee-stuffed pockets.

And anything other than that is just fog.

In an interview, Doug Bergeron explained to AllThingsD the reasoning behind the spending spree, saying that the company is undertaking a major transformation that requires selling software and services — not just hardware.

Only two weeks ago, VeriFone agreed to acquire Point, a major retail payment provider in Europe, for $817 million (not including $230 million in debt). Two weeks before that, it picked up Global Bay, a smaller company that helps retailers connect their e-commerce assets to physical stores through the use of iPads. Terms of the deal were not disclosed.

Additionally, a year ago, it agreed to buy payment security provider Hypercom in an all-stock transaction valued at about $485 million, including debt.

The three acquisitions easily push the company’s investment above $1 billion. A bet of this kind represents a substantial risk, but Bergeron believes the decision to turn into a services company was a no-brainer, even calling it “obvious.”

The San Jose company, which has about 3,000 employees globally, has a history of growing through acquisitions stretching back to 2005, so maybe it can pull it off. In its fiscal 2012, the publicly-held company is projecting it will make a profit of up to $2.50 a share on revenues of up to $1.72 billion before the Point merger is taken into account.

Earlier this year, VeriFone appeared on the defensive, after Bergeron attacked San Francisco-based Square for not providing encryption in its mobile card readers. Since then, Square has promised to add another layer of protection, although the rollout is still pending.

VeriFone now seems to be on the offensive, having figured out what role it will inhabit as mobile payments come increasingly into play. And despite Bergeron’s earlier outcry about Square, he says the company will play “the role of Switzerland,” and will be neutral about which technology will win.

In particular, VeriFone wants to be the software developer that makes all the new innovations — including Google Wallet, PayPal, ISIS, the carrier-led initiative and others – work with a retailer’s existing systems. Since retailers have limited resources for technology, he believes this will be an important role.

Here are excerpts from my interview with Bergeron, who is not modest in calculating the opportunity in front of VeriFone.

What was the thought process behind the acquisitions?

Broadly speaking, VeriFone has a very impressive market share at the point of sale, and now worldwide with Point. We see the most signficant dynamic shift taking place is the new complexity that’s hitting the point of sale as a result of all the innovation that’s taking place.

It means transforming VeriFone from a focus on the best in products to both products and services. We will be delivering payments as a service. Retailers want to take advantage of Google Wallet and the iPad, and brick-and-mortar stores want to connect with online stores through multichannel integration. But these retailers don’t have 100 people on staff capable of integrating. They can either be left behind and not participate, or they can reach out to a partner to co-manage the increasing complexity at the point of sale.

Global Bay is providing software for tablets that basically allows for integration with inventory systems and e-commerce solutions and other types of services that the market is going to demand. At the end of the day, the retailers don’t want to lose a sale, and if they have someone ready to buy something, like women’s apparel or jewelry or apparel of any type or home repairs, where there’s a dialogue in the store with the customer, they want to upsell or make sure they leave with more than they would otherwise.

Otherwise, it’s hard to compete with Amazon, which has massive distribution centers across the country. But if small or large retailers can leverage their corporate distribution centers, then they have an advantage over Amazon. They have the touch factor with the person [in the store]. It’s a new age that has arrived for multichannel retail, where brick-and-mortar meets e-commerce. That’s what Global Bay is doing so well.

So you are evolving from a hardware company to a services company?

I’m going to edit your question.

We don’t produce hardware. It’s manufactured by third partners, and our product comes out of a $130 million R&D budget, of which $110 million is software.

For VeriFone, 90 to 95 percent of revenue has been product, but over the past two years, we’ve stepped up our services business with encryption and content at the point of sale.

In the fourth quarter, the quarter we are about to report on, we are projecting that services will be 22 percent of our business, and that’s on top of the total business growing dramatically. By the end of 2015, we think we can get it to 50 percent.

With the Point acquisition, which is all services — or close to it, at 88 percent — we’ll now be in the low-30s percentage.

I’m pretty sure, but for the most simple requirements, we’ll say [to the retailer], here’s the products, here’s all the boxes, and then check all the boxes for things you want, like Google Wallet, encryption; or do you want to support gift cards, or multichannel sales through the Global Bay capability?

You have a good perspective on the wide range of mobile payments that are rolling out. How many of these technologies will make it?

What I don’t know is what are the next types of innovations coming out of the Valley or other places.

Everything looks good on YouTube, or in a standalone trial, but if you have to roll it out to thousands of stores — and 50 lanes in each store — whatever new that’s out there has to coexist with the old stuff.

Who’s going to do that and the integration, and who’s going to manage the software updates? It certainly can’t be the two guys in IT, because they don’t have the resources.

How slowly will these rollouts occur? When you put it that way, it seems impossible for retailers to adopt it very quickly.

I think things move deliberately, not slowly.

That’s a bit of a wake-up call to those who come out of the online world and think they can put some code up in the cloud and it works. But when you talk to Costco, Macy’s or McDonald’s, which are all our accounts, they are innovative. They’ve rolled out pin debit or cash back, but it goes through a process of quality assurance, and they have labs where they test all this stuff, and then methodically move it out.

National retailers will have to get on board. They are the ones that move mindshare. They want the same experience in every store in every city in every state, and to mass deploy that, it takes a fair amount of planning.

How many new providers will make it?

There’s no question there will be a few, but it’s not limitless.

There’s a limit to the amount of change and chaos that the important retailers are willing to deal with at any given time. I’m describing a situation why VeriFone is so important. They [the retailers] love the meetings with PayPal and Google and ISIS, but all of this stuff has to coexist together.

In a lot of ways, we are playing the role of Switzerland. We are supportive and encouraging of all the innovation. We are the systems-agnostic guys that are operating on behalf of the retailers.

But all of these things would require software. The things that Google is trying to accomplish integrates with back-office systems at the SKU level. If it was just throwing hardware at the problem, it’s one thing, but it’s software.

You’ve talked about the importance of Global Bay, but now let’s talk a little more about the Point. Why was that acquisition important?

The data is out there. It’s a company that has grown fivefold over the last eight years, and is precisely located in the geographies in Europe that are A) healthy, and B) prone to be the first movers of mobile payments.

That’s where the Point lives and breathes. They have massive market share using VeriFone solutions, and more than half a million merchants in Northern Europe and the U.K. are using them to manage services that are largely around keeping EMV, which stands for Europay, MasterCard and Visa, up to date. EMV uses chip technology instead of swipe technology like we do here in the U.S.

They took out all the complexity of managing EMV and provided them [retailers] a monthly managed service. It’s precisely that framework and model that will allow us to turn the lights on for PayPal and Google Wallet and other services. The Point has been very much ahead of the pack, rolling out NFC capabilities before retailers have asked for it. This can be very exciting for Google and others, because it can enable a rapid deployment capability for any of them.

Are you going to make any more acquisitions? 

We are busy integrating right now. I don’t think you’ll see anything sizable for quite some time. For the most part, we are done with Hypercom, and waiting to do integration in January for the Point. For the most part, it will be independent. I think we have a lot of tools in the shed to help to find a new VeriFone.

Amazon has not returned calls or emails seeking comment, but we have confirmed independently that Charlotte, N.C.-based Yap has been acquired by Amazon.

Reports of the acquisition surfaced earlier today after CLT, a Charlotte-based blog, connected a couple of obscure dots. First, it tracked down an SEC filing that shows that as of Sept. 8, Yap was acquired by Yarmuth Dion. Then, it discovered that Yarmouth Dion has the same mailing address as Amazon’s Seattle headquarters.

Media reports immediately jumped to the conclusion that Amazon was interested in the company’s speech recognition technology so it could compete with Siri, the voice-controlled assistant found on Apple’s newest iPhone.

And, from what we dug up, that sounds about right.

Most recently, Yap’s servers were being used by Sprint and others to convert voicemails to text. It was being shipped on a majority of Sprint’s Android handsets. Yap also had an iPhone app.

On Oct. 20, Yap voicemail was discontinued.

But the company, founded by brothers Igor and Victor Jablokov, started out in a different direction. Four years ago, the company was eager to build technology that allowed people to interact with Web services using speech recognition. The company, which raised about $10 million, presented at the TechCrunch40 event in 2007.

At the time, the idea was a little far-fetched.

Wireless networks weren’t very fast, not many people owned smartphones and distribution was tough because of the lack of app stores. With many of those problems resolved, we heard the 50-employee company was beginning to return to its roots. Now, it works for Amazon.

We can hear it now:

– “Yap, what are this season’s most popular boots?”

– “Yap, buy me the first Harry Potter novel.”

– “Yap, what’s the new hit song from Justin Bieber?”