Groupon Has Acquired LivingSocial’s TicketMonster For $260 Million
Groupon has acquired LivingSocial’s TicketMonster for $260 million. Groupon announced this news in a press release from earlier this week, which contained the company’s financial results. Groupon is paying around $100 million in cash plus $160 million in Class A common stock.
“We’re also excited to announce today that we’ve signed an agreement to acquire Ticket Monster, one of the leading ecommerce companies in Korea,” stated Groupon CEO Eric Lefkofsky. “Ticket Monster has been successful building a mobile commerce business in one of the largest markets in the world. It will serve as the cornerstone of our Asian business, bringing scale and ecommerce expertise to that region.”
This deal is expected to close next year. LivingSocial will become a Groupon stockholder as a result of the deal, despite being intense rivals.
LivingSocial acquired TicketMonster in 2011 for an undisclosed amount. LivingSocial has been trying to sell TicketMonster since late last year. TicketMonster has over $800 million in annualized billings. They are expected to receive around 10% of that amount in revenues.
LivingSocial CEO Tim O’Shaughnessy referred to TicketMonster as a “non-core asset” that does not match their strategic direction. “This sale will enable us to invest more aggressively in our marketplace innovation, product development and marketing in the US and other regions in which we operate,” stated O’Shaughnessy in the press release.