LivingSocial Lost $650 Million In 2012 Even Though Their Revenue Doubled
LivingSocial is a daily deals website that is one of the biggest competitors of Groupon. Even though LivingSocial’s revenue more than doubled to $536 million in 2012 from $250 million in 2011, the company still posted a net loss of $650 million.
These details were revealed in a regulatory filing from one of their major investors, Amazon.com. LivingSocial also reported an impairment charge of $579 million for 2012 and much of it was from a mass write-down of overseas acquisitions.
LivingSocial laid off around 400 employees in late November. Amazon.com releases financial data for LivingSocial with their own results every quarter.
Amazon.com’s book value of their investment in LivingSocial was at $52 million as of the end of the year, which is down from $94 million three months before that.
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