The purchase occurred as the craze for daily deal vouchers—which had once seen LivingSocial valued at nearly $6 billion —began to fade. The Decline of a "Unicorn"
While the acquisition helped Groupon eliminate its primary competitor and gain high-value subscribers, the announcement initially received a lukewarm reception from investors. Groupon's stock dropped by roughly following the news, which was buried in a third-quarter earnings report that showed a net loss of $35.8 million. groupon buys livingsocial
In October 2016, the "daily deals" pioneer acquired its long-time rival LivingSocial , marking the end of a fierce era of competition in the social-buying space. The Deal at a Glance The purchase occurred as the craze for daily
The acquisition cost was described as "not material," meaning it was small enough that Groupon was not required to disclose the exact figure in its financial reports. In October 2016, the "daily deals" pioneer acquired
LivingSocial's sale was a dramatic exit for a company that was once a tech darling. At its peak in 2011, it employed over 4,000 people and had raised nearly $1 billion in funding. However, by the time of the sale, its workforce had dwindled to roughly 200 employees through multiple rounds of layoffs.
Investors, including (which had invested $175 million in 2010), ultimately saw significant losses on their investments as the company's valuation plummeted. Impact on Groupon
The deal was part of a larger streamlining effort by Groupon to exit dozens of international markets and focus its operations on a core group of countries. Groupon Buys Rival LivingSocial, Reports Another Loss - WSJ