Is LivingSocial Now Under Groupon’s Umbrella- A Comprehensive Analysis of the Acquisition and Its Implications
Is LivingSocial Owned by Groupon? A Comprehensive Overview
LivingSocial, a well-known daily deals platform, has often been a subject of speculation regarding its ownership. One of the most frequently asked questions is whether LivingSocial is owned by Groupon. This article aims to provide a comprehensive overview of the relationship between these two companies.
Background of LivingSocial
LivingSocial was founded in 2007 by Amazon executives. The company quickly gained popularity for its unique model of offering local deals to consumers. By partnering with local businesses, LivingSocial provided discounts and special offers to its subscribers, which helped both the businesses and the customers. The company expanded rapidly and became a major competitor to Groupon.
The Acquisition by Groupon
In November 2010, Groupon, another prominent daily deals company, announced its intention to acquire LivingSocial. The deal was valued at approximately $6.5 billion and was expected to strengthen Groupon’s position in the market. However, the acquisition faced regulatory hurdles, and the final deal was valued at $2.5 billion, with Groupon acquiring a 30% stake in LivingSocial.
Ownership Structure
Following the acquisition, Groupon maintained a significant ownership stake in LivingSocial. However, the ownership structure has evolved over time. In 2013, Groupon sold a portion of its stake in LivingSocial, reducing its ownership to 20%. In 2015, Groupon sold its remaining stake in LivingSocial, effectively ending its ownership in the company.
Current Status
As of now, LivingSocial operates independently from Groupon. The company has continued to offer daily deals and has expanded its services to include experiences, marketplaces, and more. While LivingSocial has faced challenges and has seen its market share decline, it remains a significant player in the daily deals industry.
Conclusion
In conclusion, LivingSocial is no longer owned by Groupon. The acquisition and subsequent sale of shares have led to a separation between the two companies. Despite the changes in ownership, LivingSocial continues to offer valuable deals and services to its customers, maintaining its presence in the daily deals market.
