A fact, which is not commonly known, is that Groupon used to have a major rivalry in the industry, this came in the form of LivingSocial. However, the company recently acquired their competitor, which sent their NASDAQ stocks soaring.
The company stated that the acquisition price for the merger had been relatively nothing. However, further details relating to the specifics of the acquisition have not yet been released by either entity.
Stock reports and market watch following the news of this acquisition
Needless to say, investors felt a lot more confident in Groupon, following the news that the company had acquired one of its largest competitors. This was emphasized by the whopping 23% rise on Wednesday in trading stock.
Furthermore, the company experienced a peak in stock prices at $4.64, which was only previously matched onOctober 26, 2016. This can be listed as the company’s fifth largest percentage gain of all time.
The company also managed to out exceed the expectations of Wall Street, with a total revenue roughing up $935 million. Whereas, the company was expected to only list a revenue report of $913 million.
More details about Groupon’s market and the acquisition deal
LivingSocial, once upon a time, was a giant, such as Groupon. However, it seems that time was a sacrifice to it, for Groupon announced that the acquisition deal was ‘No Consideration’. This label is only given to deals, where the entity being acquired is going for virtually nothing.
This is somewhat surprising, as when LivingSocial was in it’s peak and rivalry Groupon, the company was estimated to be worth $6 billion, which evidently is far out what Groupon invested in acquiring it.
Furthermore, along with its acquisition deal, the company released a filing, which illustrated that it had listed 52.7 million active users at the end of 2016. This was previously sitting at 48.7 million users. However, the acquisition of LivingSocial also led to a one million user boost for Groupon.