Andre Yoskowitz
27 Oct 2016 14:32
Daily deals site Groupon has acquired its one-time rival LivingSocial for an amount it called "not material," suggesting the company paid very little for the company that was once worth a billion.
Investors were not happy with the move, however, as the company's stock fell 19 percent following the news.
"We are happy to have them join us on our mission to build a daily habit in local commerce," Groupon CEO Rich Williams said. The company will take on LivingSocial's 200 employees.
In 2010, at its peak, LivingSocial had a valuation of somewhere between $500 million and $1 billion and Amazon even invested $175 million in the company. However, by 2012, Amazon had written down its entire investment and stopped marketing for the company.
Groupon says the deal will bring 1 million customers over and could bring $15 million in additional revenue per quarter.