Will purchasing LivingSocial save Groupon?
The once-popular daily deals site is hoping to stay in the game buy eliminating its rival and pivoting to a deals marketplace. Following the announcement, its shares dropped.
On Wednesday, the company announced that it was purchasing LivingSocial. Groupon said the “amount of the purchase isn’t material,” according to Bloomberg—and the deal should close next month.
Daily deal sites like these were once the darlings of the internet startup landscape. Now, both are struggling—LivingSocial more than Groupon.
“We are happy to have them join us on our mission to build a daily habit in local commerce,” Groupon CEO Rich Williams told analysts in a conference call.
Williams said he expects the deal to expand Groupon’s customer base and extend its reach with local businesses.
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Last month, LivingSocial announced layoffs that would affect half of its staff. The company—which once employed more than 4,000 workers and was valued at $6 billion—now employs roughly 200 staffers.
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