Facebook Joins Online Coupon Frenzy

Facebook Deals was launched Tuesday in five U.S. cities as the hype over finding deals online grows to a fever pitch.

Facebook joined the online-coupon fray today with the launch of a program in five U.S. cities aimed at biting into Groupon's market share. The program, called Facebook Deals, follows a similar initiative announced last week by Google and last year's introduction of Swarmjam in Canada. The five cities – Atlanta, Austin, Dallas, San Diego, and San Francisco – will get to test out coupons geared more toward activities, such as concerts, than to products. Facebook has yet to say if or when Deals will launch in Canada. The online coupon market has proven to be lucrative, with Groupon's upcoming initial public offering valued at close to $20 billion.