Get Started

Learn more about Credit Cards, Travel Programs, Deals, and more.

Ailing Groupon to Buy Living Social: Consolidation in the Struggling Local Deal Space

This post may contain affiliate links - Advertiser Disclosure. As an Amazon Associate, we earn from qualifying purchases.

Groupon Living Social Purchase

Groupon Living Social Purchase

Back when the economy was slowing down, local deal sites such as Groupon and Living Social were all the rage. In fact, these types of deals were so popular that companies like Amazon and Google got into the game for awhile as did local news stations and just about everyone else. They all quickly learned it was hard to make money doing it and one by one they exited.

Still, the biggest two sites Groupon and Living Social survived and lived on. Living Social was heavily invested in by Amazon, but that wasn’t enough to make the company soar. In fact, back in 2012 Amazon valued the company at over $1 Billion, whereas by the end of 2014 the valuation was only $242 million. A huge drop.

Following Groupon’s disappointing earnings announcement today where they announced a 3rd quarter loss of $38 million or 7 cents a share, the company also entered an agreement to buy Living Social. The purchase price wasn’t disclosed, but the company said it is “not material” which hints at a very low price.

You can find more details in this Wall Street Journal article. What are your thoughts? Will this consolidation be bad for the daily deal market or has that space already dried up?

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

Lower Spend - Chase Ink Business Preferred® 100K!

Chase Ink Business Preferred® is a powerful card that earns 3X Ultimate Rewards points in a broad range of business categories on the first $150K in spend per year. Right now earn 100K Chase Ultimate Rewards points after $15K $8K spend in the first 3 months with a $95 annual fee.

Learn more about this card and its features!


Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
Shawn Coomer
Shawn Coomerhttps://milestomemories.com/
Shawn Coomer earns and burns millions of miles/points per year circling the globe with his family. An expert at accumulating travel rewards, he founded Miles to Memories to help others achieve their travel goals for pennies on the dollar. Shawn also runs a million dollar reselling business, knows Vegas better than most and loves to spend his time at the 12 Disney parks across the world.

Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

3 COMMENTS

  1. Not a surprise they lost money….Groupon sends me a 20% deal pretty much every day….I would think that is pretty close to their profit margin on these deals. But I use it all the time. Getting $40 worth of Pizza this weekend for $15!

  2. Apple better be watching this. Groupon and Living Social are great examples of the Blockbuster Effect and Apple will follow. Early one hit wonder with no consistent future innovation.

    Entrepreneurs have a motto: “Innovate or Die”. Simple as that.

  3. I actually use Groupon all the time. On top of its good prices and occasionally great sales, it tends to pay generous portal commissions– even when paying with a Groupon GC (which you can buy for 5x or % off). One recent score: this Feb, I got two nights in a $350 hotel room for ~$140 once all discounts were taken into account.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related

7,703FansLike
9,903FollowersFollow
16,444FollowersFollow