Groupon acquires a beleaguered LivingSocial - Technical.ly DC

Business

Oct. 27, 2016 9:19 am

Groupon acquires a beleaguered LivingSocial

The Chicago-based company announced the deal in its third quarter earnings report on Wednesday.
And so two daily deals sites become one.

And so two daily deals sites become one.

(Photo by Flickr user jeanbaptisteparis, used under a Creative Commons license)

Chicago-based Groupon announced on Wednesday that is has entered into an agreement to acquire D.C.’s LivingSocial. Groupon made the announcement inside a third quarter earnings report.

Financial terms of the deal were not disclosed. Instead, Groupon said “the acquisition consideration is not material.” In other words, the deal wasn’t anything to write home about, at least in financial terms. The deal bringing together these two erstwhile rivals is expected to close next month. According to Crain’s Chicago Business, Groupon expects to acquire about 1 million customers and around 180 employees from the Amazon-backed LivingSocial. It’s not clear if LivingSocial will retain an office in the District.

The LivingSocial that Groupon is acquiring is very different from what it looked like at its peak. LivingSocial was once a crown jewel of the #dctech scene — raising over $928 million in nine rounds. But then came the decline and a recurring pattern of layoffs sometimes described as a company “turnaround.”

Now, perhaps, LivingSocial’s greatest legacy in #dctech is a whole spinoff world of startup founders who previously worked for the deals giant. Think Alan Clifford, cofounder at Galley, or Susan Tynan, founder of Framebridge. And that’s just to name a couple — the Washington Post chronicled this pattern here.

-30-
CONTRIBUTE TO THE
JOURNALISM FUND

Already a contributor? Sign in here
Connect with companies from the Technical.ly community
New call-to-action

Advertisement

M&A Moves: CACI International closed 3 acquisitions last month

M&A Moves: EVERFI closed on its first international acquisition deal

M&A Moves: Herndon-based ePlus acquires parts of ABS Technology

SPONSORED

DC

Verizon is looking for the brightest ideas on how to use its 5G technology

Philadelphia, PA

Vistar Media

QA Engineer

Apply Now

Philadelphia, PA - Center City

Odessa

Business Architect

Apply Now

Washington, D.C.

The Washington Post

Software Engineer

Apply Now

REQ acquired a West Coast-based performance marketing agency

Reston-based Leidos is set to acquire IMX Medical Management Services

M&A Moves: DC-based MissionSide and Blue Water are merging

SPONSORED

DC

Escape the August heat with cool AI tech

Washington, D.C.

The Washington Post

Scrum Master

Apply Now

Philadelphia

Vistar Media

Sr. Software Engineer

Apply Now

Philadelphia

Vistar Media

Front End Engineer

Apply Now

Sign-up for daily news updates from Technical.ly Dc

Do NOT follow this link or you will be banned from the site!