LivingSocial Buys SocialMedia.com For $3 Million

Daily coupon e-mail company LivingSocial is acquiring SocialMedia.com for $3 million. LivingSocial recently raised $400 million in funding and this deal was made entirely in stock. SocialMedia.com raised $10 million in funding since they launched around September 2007.

SocialMedia.com was one of the first companies to use Facebook friends’ pictures in ads. SocialMedia.com’s 2008 revenues was $15 million and 2009 revenues was $25 million. Facebook attempted to acquire SocialMedia.com according to a source with TechCrunch. SocialMedia.com’s revenues declined ever since and Facebook threatened legal action against the company for privacy policy violations.

[TechCrunch]

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