Groupon Buys Livingsocial «Cross-Platform»

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 groupon buys livingsocial

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. LivingSocial's sale was a dramatic exit for a

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. Investors, including (which had invested $175 million in

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"