Google’s much-rumored acquisition of Groupon is off, we’ve confirmed with a source with knowledge of the deal. The news was reported earlier by Chicago Breaking Business, and we’ve verified that the deal is indeed off.

The two companies have been in serious negotiations for at least the last week, with reports stating that Google was bidding as much as $6 billion for the red-hot local deals company.

Our source has also verified that Groupon’s annual revenues are now at a $2 billion run rate, which is much higher than the figures that had previously been circulating (this number was reported by AllThingsD a few minutes ago). The $2B figure is the total value of Groupons sold — half of the cost of the Groupon goes back to the merchant, but all the revenue passes through Groupon in much the same way that Google collects all AdSense dollars and counts them as revenues before passing along a portion to publishers.

The CBB report says that Groupon may be eying a possible IPO, though it won’t be making a decision about going public until next year.

We’ll update as we hear more.