ME Newswire / Businesswire
WASHINGTON - Friday, November 8th 2013
LivingSocial today announced it has entered into a definitive agreement to sell its Korean-based Ticket Monster (TMON) business to Groupon for $260 million in cash and stock. This deal will allow LivingSocial to reinvest and focus on its core business and is expected to close in the first half of 2014.
"This transaction culminates after a many month process during which we received several competitive offers. This is a great deal for LivingSocial, allowing us to monetize a non-core asset and increase focus on our core platform,” said Tim O’Shaughnessy, CEO of LivingSocial. He continued, "Since LivingSocial’s acquisition of TMON in 2011, both operations have evolved to meet their specific market needs. Today, TMON, while a great company, does not match our strategic direction, given that over half its business is goods oriented. 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.”
Changing the Deal Landscape
In September 2013, LivingSocial announced a strategic refocusing to offer increased flexibility for merchants and a greater depth of selection for consumers. LivingSocial announced the evolution of its core platform beyond daily deals and looks forward to additional investment in product development and enhanced marketing capabilities.
About the Deal
Per the terms of the agreement, Groupon will acquire the holding company that owns Ticket Monster, LivingSocial Korea. Any non-Korean assets currently owned by LivingSocial Korea will be divested prior to close. The agreement is for at least $100 million in cash, and up to $160 million in Groupon Class A common stock, with the final cash and stock allocation to be determined upon close. The transaction is subject to regulatory and other customary closing conditions, including review by Korean antitrust authorities.
About LivingSocial
For more about LivingSocial, connect with us at livingsocial.com, on our blog, or on Facebook, Twitter, or YouTube.
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Contacts
LivingSocial
Kevin Nolan, 202-870-9559
publicrelations@livingsocial.com
MSLGROUP
Paul DiPerna/Mark McClennan
781-684-0770
publicrelations@livingsocial.com
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