LivingSocial is considering to raise $200 million in funding at a valuation of $6 billion instead of pursuing an initial public offering. The new round of funding may be in equity and debt said sources with Bloomberg. JPMorgan Chase & Co. is acting as an adviser in the funding round.
LivingSocial was in talks with the banks earlier this year about raising $ 1 billion in an IPO. Recently the stock market performance has not been doing too well. Standard & Poor’s 500 Index has dropped 13% since July 21st. LivingSocial’s biggest rival Groupon has also postponed their IPO.
This potential round of funding would include LivingSocial’s existing investors and new investors. LivingSocial raised $400 million this past April at a vauation of $3.5 billion. They raised a total of $627 million from Grotech Ventures, IVP, T. Rowe Price Group Inc., and Amazon.com.