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{{Short description|Company purchased by Groupon}}
{{Infobox Website
{{Infobox website
| name = LivingSocial
| name = LivingSocial
| logo = [[Image:logo livingsocial1.jpg|LivingSocial logo.|180px]]
| logo = LivingSocial logo.svg
| screenshot =
| screenshot =
| caption =
| caption =
| url = [https://livingsocial.com/ LivingSocial.com]
| url = [https://livingsocial.com/ LivingSocial.com]
| alexa = 521 ({{as of|2012|8|2|alt=August 2012}})<ref name="alexa">{{cite web|url= http://www.alexa.com/siteinfo/livingsocial.com |title= Livingsocial.com Site Info | publisher= [[Alexa Internet]] |accessdate= 2012-08-02 }}</ref><!--Updated monthly by OKBot.-->
| commercial = Yes
| commercial = Yes
| type = [[Electronic commerce]]
| type = [[Electronic commerce]]
| language = English and others (for 27 countries)
| language = English and others (for 27 countries)
| owner = LivingSocial Inc.
| owner = [[Groupon]]
| author = [[Tim O'Shaughnessy (businessman)|Tim O'Shaughnessy]], Aaron Batalion, Eddie Frederick, Val Aleksenko
| author = {{unbulleted list|[[Tim O'Shaughnessy]]|Aaron Batalion|Eddie Frederick|Val Aleksenko}}
| key_people = {{unbulleted list|Gautam Thakar|(CEO & President before company was acquired by Groupon)<ref>{{cite web | url=http://www.bizjournals.com/washington/news/2017/03/08/no-more-livingsocial-groupon-to-lay-off-95-d-c.html |title=Groupon to lay off last 95 LivingSocial staffers, close D.C. office |website=Washington Business Journal}}</ref>}}
| headquarters = [[Washington, DC]], U.S.
| launch date = 2007
| location = [[Chicago]], U.S.
| launch_date = {{start date and age|2007|6|29}}<ref>{{cite web|url=http://whois.domaintools.com/hungrymachine.com|title=HungryMachiene.com WHOIS, DNS, & Domain Info - DomainTools|work=[[WHOIS]]|access-date=2016-07-10}}</ref> (as Hungry Machine)
| current status = Active
| revenue =
| current_status = Active
| revenue = $536,000,000 (2012)<ref name="Inc Profile">{{cite web|title=LivingSocial Company Profile|url=http://www.inc.com/profile/livingsocial|website=inc.com|publisher=Inc.|access-date=19 June 2014}}</ref> $57,000,000 (2015)<ref>{{cite web|title=LivingSocial cuts its Q4 loss but revenue down, expenses up|url=http://www.bizjournals.com/washington/blog/2015/01/livingsocial-cuts-its-q4-loss-but-revenue.html|website=Washington Business Journal|access-date=1 September 2016}}</ref>
| slogan =
| content_license =
| content license =
}}
}}


'''LivingSocial''' is an [[online marketplace]] that allows its registered users to buy and share things to do in their city.<ref name="Bloomberg Profile">{{cite web|title=Company Overview of LivingSocial, Inc.|url=http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=46949916|archive-url=https://web.archive.org/web/20090715223828/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=46949916|url-status=dead|archive-date=July 15, 2009|website=www.businessweek.com|publisher=Bloomberg|access-date=20 June 2014}}</ref> Formerly headquartered in [[Washington, D.C.]], LivingSocial had roughly 70 million members around the world in 2013.<ref name="Inc Profile" /> The company shrank from a peak of 4,500 employees in 2011 to about 200 in 2016.<ref name="wapo">{{cite news|last1=Peterson|first1=Andrea|title=LivingSocial is laying off more than half of its workers|url=https://www.washingtonpost.com/news/the-switch/wp/2016/03/16/livingsocial-is-laying-off-more-than-half-of-its-workers/|newspaper=Washington Post|access-date=1 Sep 2016}}</ref><ref name="nyt">Issac, Mike and Benner, Katie. ''New York Times'', Nov. 20, 2015. "[https://www.nytimes.com/2015/11/22/technology/livingsocial-once-a-unicorn-is-losing-its-magic.html?_r=0 LivingSocial Offers a Cautionary Tale to Today’s Unicorns]". Accessed Sept. 1, 2016.</ref> LivingSocial was purchased by Groupon in 2016.
{{Advert|date=October 2012}}


⚫
==History==
LivingSocial was founded as Hungry Machine in 2007 by four employees from [[Revolution Health Group]].<ref>{{cite web|last1=Empson|first1=RIp|title=Confirmed: LivingSocial Co-founder Eddie Frederick Steps Down From Leadership, Board|url=https://techcrunch.com/2012/03/29/livingsocial-cofounder-steps-down/|website=TechCrunch.com|date=30 March 2012 |publisher=Tech Crunch|access-date=19 June 2014}}</ref> After acquiring BuyYourFriendADrink.com in 2009, LivingSocial launched a daily deals website.<ref name="BuyYourFriendADrink Acquisition">{{cite web|last1=McCarthy|first1=Caroline|title=BuyYourFriendaDrink gets bought|url=http://www.cnet.com/news/buyyourfriendadrink-gets-bought/|website=www.cnet.com|publisher=CNet|access-date=19 June 2014}}</ref><ref name="Tim Interview">{{cite web|last1=Yarow|first1=Jay|title=Exclusive Q&A with LivingSocial CEO|url=http://www.businessinsider.com/livingsocial-interview-2011-2|publisher=Business Insider|access-date=19 June 2014}}</ref> The company offered its first deal in July 2009.<ref name=":0">{{Cite news|url=https://www.washingtonpost.com/news/innovations/wp/2017/02/25/rip-livingsocial-the-fast-rise-and-slow-demise-of-a-daily-deals-company/|title=RIP LivingSocial: The fast rise and slow demise of a daily deals company|last=Overly|first=Steven|newspaper=Washington Post|language=en|access-date=2019-03-21}}</ref> By July 2010, the company had launched deals in 25 cities.<ref name=":0" />


By 2011, LivingSocial had raised over $800 million in venture capital funds.<ref name=":2">{{Cite news|url=https://www.nytimes.com/2015/11/22/technology/livingsocial-once-a-unicorn-is-losing-its-magic.html|title=LivingSocial Offers a Cautionary Tale to Today's Unicorns|last1=Isaac|first1=Mike|date=2015-11-20|work=The New York Times|access-date=2019-04-08|last2=Benner|first2=Katie|language=en-US|issn=0362-4331}}</ref> That same year, the company generated $238 million in revenue but lost $499 million.<ref name="nyt"/> In 2012, a [[class action]] lawsuit was filed against LivingSocial with respect to the expiration of deals, following a similar action against [[Groupon]].<ref>[http://www.bizjournals.com/washington/print-edition/2012/07/06/livingsocial-coupon-suit-gains-steam.html?page=all Washington Business Journal]</ref> A provisional settlement was reached in November 2012.<ref>{{cite web|last1=Kamenetz|first1=Anya|title=LivingSocial Ordered to Pay $4.1 Million to Settle Class Action Suit|url=http://www.fastcompany.com/3007496/livingsocial-ordered-pay-41-million-settle-class-action-suit|website=fastcompany.com|date=26 March 2013|publisher=Fast Company|access-date=19 June 2014}}</ref>
'''LivingSocial''' is a [[One deal a day|deal-of-the-day]] website that features discounted gift certificates usable at local or national companies. Based in Washington, D.C., LivingSocial now has more than 70 million members around the world.


In 2012, the [[Government of the District of Columbia]] offered the company a number of tax breaks and incentives to open offices and hire workers in [[Washington, DC]]. However, a year later the company did not reach the size it needed to be for the tax breaks to kick in, as it had begun laying off workers and subleased offices it purchased earlier.<ref name=":1">O'Connell, Jonathan. ''The Washington Post'', Oct. 6, 2013. "[https://www.washingtonpost.com/business/capitalbusiness/livingsocial-has-yet-to-reach-hiring-and-other-goals-to-claim-dc-tax-breaks/2013/10/06/c34600d0-2b6a-11e3-b139-029811dbb57f_story.html LivingSocial has yet to reach hiring and other goals to claim D.C. tax breaks]. Accessed Sept. 1, 2015.</ref> The company also announced it was changing its focus from daily deals to a website and mobile app.<ref name=":1" />
⚫
==History==
LivingSocial was founded as Hungry Machine in 2007 by four employees from [[Revolution Health Group]]. The company's first major application was their Visual Bookshelf application on Facebook which allowed users to catalog and share their favorite books with friends.<ref>{{cite news|last=Hart |first=Kim |url=http://voices.washingtonpost.com/posttech/2009/04/livingsocial_takes_top_spot_am.html |title=LivingSocial Takes Top Spot Among Facebook Apps - Post I.T. - A Technology Blog From The Washington Post - (washingtonpost.com) |publisher=Voices.washingtonpost.com |date= |accessdate=2010-11-19}}</ref> Later, the company released PickYourFive and other Polls applications, making LivingSocial the number one application developer on Facebook as measured by page views.<ref>{{cite web|url=http://www.allfacebook.com/livingsocial-facebook-application-2009-04 |title=LivingSocial Becomes the Largest Facebook Application Ever |publisher=Allfacebook.com |date= |accessdate=2010-11-19}}</ref> After acquiring BuyYourFriendADrink.com in 2009, LivingSocial launched a daily deals business, which since has become its highest grossing venture to date.<ref>{{cite web|url=http://dc.citybizlist.com/yourcitybiznews/detail.aspx?id=87587 |title=Citybizlist Washington DC - Hungry Machine/Living Social Devours Another $10.2M - cbl |publisher=Dc.citybizlist.com |date= |accessdate=2010-11-19}}</ref>


On April 26, 2013, it was announced that LivingSocial's database had been hacked, affecting 50 million registered users. While the announcement stated that credit card information not compromised, other user information including passwords was exposed.<ref>{{cite news |url=http://redtape.nbcnews.com/_news/2013/04/26/17933466-livingsocial-database-hacked-50-million-customers-impacted?lite |title=Living Social Database Hacked; 50 Million customers impacted |publisher=redtape.nbcnews.com |access-date=2013-04-26 |url-status=dead |archive-url=https://web.archive.org/web/20130428133237/http://redtape.nbcnews.com/_news/2013/04/26/17933466-livingsocial-database-hacked-50-million-customers-impacted?lite |archive-date=2013-04-28 }}</ref><ref>{{cite web |url=https://arstechnica.com/security/2013/04/why-livingsocials-50-million-password-breach-is-graver-than-you-may-think/ |title=Why LivingSocial's 50-million password breach is graver than you may think |newspaper=Ars Technica |date= April 27, 2013 |author=Dan Goodin |access-date=November 8, 2014}}</ref> On May 1, 2013, the Attorneys General of Connecticut and Maryland sent a joint letter to LivingSocial requesting additional information about the incident, as well as more details about the company's data management policies and procedures.<ref>{{cite journal|last=Radke|first=Bruce A.|author2=Michael J. Waters |title=Letter from Attorneys General to LivingSocial Can Serve as Guide for Companies Seeking to Protect Personal Information|journal=The National Law Review|date=May 16, 2013|url=http://www.natlawreview.com/article/letter-attorneys-general-to-livingsocial-can-serve-guide-companies-seeking-to-protec|publisher=Vedder Price|issn=2161-3362}}</ref>
In 2012 a [[class action]] was launched against LivingSocial in respect of expiry of deals, following a similar action against [[Groupon]].<ref>[http://www.bizjournals.com/washington/print-edition/2012/07/06/livingsocial-coupon-suit-gains-steam.html?page=all Washington Business Journal]</ref> A provisional settlement was reached in November 2012.<ref>[http://www.livingsocialvouchersettlement.com/ Settlement details]</ref>


By 2015, LivingSocial had 800 employees, down from a peak of 4,500 in 2011.<ref name="nyt" /><ref name=":2" /> In 2016, it laid off half of its remaining workforce.<ref name="wapo" /> That year, The Washington Post reported that many laid off or departed workers formed new tech companies in LivingSocial's home city of Washington, DC.<ref>{{cite news|last1=Overly|first1=Steven|title=How LivingSocial is giving rise to the next wave of Washington start-ups|url=https://www.washingtonpost.com/business/capitalbusiness/after-leaving-livingsocial-a-fresh-crop-of-entrepreneurs-sprout-up-in-washington/2015/02/19/f898a1c2-a65f-11e4-a06b-9df2002b86a0_story.html|newspaper=Washington Post|access-date=1 Sep 2016}}</ref>
===Funding===
The company received $5 million in [[Series A]] funding in June, 2008 from Grotech Ventures and Steve Case. In January 2010, LivingSocial raised $5 million in Series B funding from Grotech Ventures and AOL Founder Steve Case. Two months later, on March 11, 2010, the company announced a $25 million round led by U.S. Venture Partners, Grotech and Case. LivingSocial then acquired $14 million Series C round, from Lightspeed Venture Partners with U.S. Venture, Grotech and Case contributing.<ref>{{cite news|author=April 29, 2010 Jolie O'Dell View Comments |url=http://mashable.com/2010/04/29/livingsocial-series-c/ |title=Groupon Competitor LivingSocial Has Now Raised $44 Million This Year |publisher=Mashable.com |date=2010-04-29 |accessdate=2010-11-19}}</ref> Most recently, US Venture Partners and Grotech invested an additional $10.23 million of equity offering to the company. Its fundraising for 2010 comes to $50 million.<ref name="allthingsd1">{{cite web|last=Swisher |first=Kara |url=http://kara.allthingsd.com/20100916/in-25-city-expansion-livingsocial-tries-to-play-catch-up-with-groupon/ |title=LivingSocial Brings Funding Up to $50 Million, Launches in 25 New Cities &#124; Kara Swisher &#124; BoomTown &#124; AllThingsD |publisher=Kara.allthingsd.com |date=2010-09-16 |accessdate=2010-11-19}}</ref> In December 2010, LivingSocial received a $175 million investment from Amazon.com.<ref name="JPRICE200">{{cite news|author=December 3, 2010 Riley McDermid |url=http://venturebeat.com/2010/12/03/livingsocial-amazon-funding/|title=Group buying startup LivingSocial starts living large with $175M from Amazon
|publisher=VentureBeat.com |date=2010-12-03 |accessdate=2010-12-03}}</ref> LivingSocial also received an additional $8 million investment from Lightspeed Venture Partners.<ref name="JPRICE200"/> In March 2011, less than four months after the $175 million Amazon investment, LivingSocial raised an additional $400 million from prior investors like Amazon and Lightspeed Venture Partners, and several new ones including [[T. Rowe Price]] and [[Institutional Venture Partners]]. As of early April, LivingSocial is valued at more than $3 billion.<ref>{{cite news|author=April 4, 2011 Evelyn M. Rusli. |url=http://dealbook.nytimes.com/2011/04/04/livingsocial-chief-races-to-escape-shadow-of-groupon// |title=In Race With Groupon, LivingSocial Raises $400 Million |publisher=New York Times online.com |date=2011-04-04 |accessdate=2011-04-06}}</ref>


In October 2016, [[Groupon|Groupon Inc.]] purchased LivingSocial for an undisclosed amount.<ref>{{Cite news|url=https://www.wsj.com/articles/groupon-to-buy-livingsocial-reports-another-loss-1477514441|title=Groupon Buys Rival LivingSocial, Reports Another Loss|last1=FitzGerald|first1=Drew|date=2016-10-26|newspaper=Wall Street Journal|access-date=2016-10-27|last2=Beckerman|first2=Josh|issn=0099-9660}}</ref> The Washington Post later reported this amount was $0.<ref>{{cite web|url=https://www.washingtonpost.com/news/innovations/wp/2017/02/25/rip-livingsocial-the-fast-rise-and-slow-demise-of-a-daily-deals-company/|title=RIP LivingSocial: The fast rise and slow demise of a daily deals company|last=Overly|first=Steven|date=25 February 2017|via=www.washingtonpost.com|access-date=22 April 2018}}</ref> Groupon began laying off all remaining employees and closed the LivingSocial D.C. office.<ref>{{Cite web|url=https://www.bizjournals.com/washington/news/2017/09/18/learning-the-livingsocial-lesson-let-amazon-take.html|title=Learning the LivingSocial lesson: Let Amazon take the financial risk with HQ2, a former D.C. official says|website=www.bizjournals.com|access-date=2018-08-27}}</ref>
In 2011, LivingSocial completed a $400 million round of funding valuing LivingSocial at $3 billion.<ref>{{cite news|url=http://www.washingtonpost.com/business/capitalbusiness/livingsocial-based-in-dc-raises-400-million-as-it-vies-with-groupon/2011/04/05/AFl8TClC_story.html |title=LivingSocial, based in D.C., raises $400 million as it vies with Groupon |publisher=www.washingtonpost.com |date= 2011-04-05|accessdate=2011-04-06 |first=Allison |last=Klein}}</ref>

=== Leadership changes ===
In March 2012, co-founder Eddie Frederick stepped down as president and from the board of directors.<ref>{{cite web|last1=Empson|first1=Rip|title=Confirmed: LivingSocial Co-founder Eddie Frederick Steps Down From Leadership, Board|url=https://techcrunch.com/2012/03/29/livingsocial-cofounder-steps-down/|website=techcrunch.com|date=30 March 2012 |publisher=TechCrunch|access-date=4 September 2014}}</ref> A year later in March 2013, co-founder and CTO Aaron Battalion stepped down from his post.<ref name="WJLA">{{cite web|title=LivingSocial CTO Aaron Batalion to step down|url=http://wjla.com/news/government-matters/livingsocial-cto-aaron-batalion-to-step-down-86946|website=wjla.com|access-date=18 March 2016|url-status=dead|archive-url=https://web.archive.org/web/20160326012153/http://wjla.com/news/government-matters/livingsocial-cto-aaron-batalion-to-step-down-86946|archive-date=26 March 2016}}</ref> In January 2014, LivingSocial's CEO [[Tim O'Shaughnessy]] announced his resignation, remaining CEO until a replacement was named.<ref>Flook, Bill. January 10, 2014, ''Washington Business Journal'', "[http://www.bizjournals.com/washington/blog/techflash/2014/01/livingsocial-ceo-tim-oshaughnessy-to.html Exclusive: LivingSocial CEO Tim O'Shaughnessy to step down]". Accessed March 3, 2014.</ref> In July 2014, it was announced that [[Gautam Thapar|Gautam Thakar]], then-CEO of Shopping.com at eBay, would succeed the position of CEO at LivingSocial.<ref>{{cite news|last1=Stynes|first1=Tess|title=LivingSocial Names Gautam Thakar CEO|url=https://online.wsj.com/articles/livingsocial-names-gautam-thakar-ceo-succeeding-tim-oshaughnessy-1405448883|newspaper=Wall Street Journal|date=15 July 2014|access-date=28 August 2014}}</ref>


===Acquisitions===
===Acquisitions===
* In October 2010, LivingSocial announced acquisition of social adventure company Urban Escapes, which led to the launch of LivingSocial Escapes and LivingSocial Adventures.<ref>{{cite web|url=http://blog.kelseygroup.com/index.php/2010/10/20/livingsocial-continues-to-differentiate-with-purchase-of-urban-escapes/ |title=LivingSocial Continues to Differentiate with Purchase of Urban Escapes |publisher=www.blog.kelseygroup.com |date= |accessdate=2011-04-13}}</ref>
* In October 2010, LivingSocial announced acquisition of social adventure company Urban Escapes.<ref>{{Cite web|url=https://mashable.com/2010/10/19/livingsocial-acquires-urban-escapes/|title=LivingSocial Acquires Adventure Company to Improve Daily Deals|last=Grove|first=Jennifer Van|website=Mashable|date=19 October 2010|language=en|access-date=2019-04-08}}</ref>
* In November 2010, LivingSocial bought $5 million controlling stake in Australian social shopping site Jump On It.<ref>{{cite web|url=http://www.dailydealmedia.com/livingsocial-buys-5-million-controlling-stake-in-jump-on-it468/ |title=LivingSocial Buys 5 million controlling stake in jump on it |publisher=www.dailydealmedia.com |date= |accessdate=2011-04-13}}</ref> The acquisition makes LivingSocial the biggest social shopping player in Australia.<ref>{{cite web|url=http://socialtimes.com/livingsocial-expands-into-australia-with-5m-investment-in-jump-on-it_b28440/ |title=LivingSocial Expands into Australia with 5m investment in jump on it |publisher=www.socialtimes.com |date= |accessdate=2011-04-13}}</ref>
* In November 2010, LivingSocial bought $5 million controlling stake in Australian social shopping site Jump On It. In March 2012, LivingSocial purchased Jump On it for $40 million.<ref>{{cite web|url=http://www.smh.com.au/it-pro/business-it/livingsocial-jumps-on-australian-groupbuying-outfit-20120301-1u5ey.html |title=LivingSocial jumps on Australian group-buying outfit |date=March 2012 |publisher=Sydney Morning Herald |access-date=2016-07-11}}</ref>
* In January 2011, LivingSocial acquired a majority stake in LetsBonus, which now operates in Spain, Italy, Portugal, Argentina, Uruguay, Chile, Colombia and Mexico. Launched in September 2009 in Barcelona, Let’s Bonus was an early operator of a [[collective buying]] service in Europe, particularly in the Spanish market.<ref>{{cite web|url=http://fusiondiginet.com/2011/01/13/social-commerce-site-livingsocial-acquires-a-majority-stake-in-lets-bonus/ |title=LivingSocial acquires a majority stake in Let's Bonus |publisher=www.fusiondiginet.com |date= |accessdate=2011-04-13}}</ref>
* In January 2011, LivingSocial acquired a majority stake in LetsBonus.<ref>{{cite web|url=http://fusiondiginet.com/2011/01/13/social-commerce-site-livingsocial-acquires-a-majority-stake-in-lets-bonus/ |title=LivingSocial acquires a majority stake in Let's Bonus |date=13 January 2011 |publisher=www.fusiondiginet.com |access-date=2011-04-13}}</ref> It sold LetsBonus in 2015.<ref>{{Cite web |last=Lunden |first=Ingrid |date=2015-02-12 |title=LivingSocial Offloads Let's Bonus, Its Last Non-English Business [Updated] |url=https://techcrunch.com/2015/02/12/livingsocial-offloads-its-lets-bonus-business-to-spains-ofertix/ |access-date=2023-03-14 |website=TechCrunch |language=en-US}}</ref>
* In March 2011, LivingSocial acquired InfoEther, a [[Ruby on Rails|Ruby/Rails]] consultancy.<ref>{{cite web|url=http://techcrunch.com/2011/03/14/livingsocial-gains-wealth-of-ruby-on-rails-expertise-with-infoether-acquisition/ |title=LivingSocial gains wealth of ruby on rails expertise with Infoether acquisition |publisher=www.fusiondiginet.com |date= |accessdate=2011-04-13}}</ref> Ruby on Rails is the platform upon which LivingSocial runs.<ref>{{cite web|url=http://www.dctechsource.com/livingsocial-acquires-rubyrails-consultancy-infoether.aspx |title=LivingSocial acquires rubyrails consultancy infoether |publisher=www.dctechsource.com |date= |accessdate=2011-04-13}}</ref>
* In March 2011, LivingSocial acquired InfoEther, a [[Ruby on Rails|Ruby/Rails]] consultancy.<ref>{{cite web|url=https://techcrunch.com/2011/03/14/livingsocial-gains-wealth-of-ruby-on-rails-expertise-with-infoether-acquisition/ |title=LivingSocial gains wealth of ruby on rails expertise with Infoether acquisition |date=14 March 2011 |publisher=www.techcrunch.com |access-date=2011-04-13}}</ref>
* In June 2011, Dubai Based GoNabit, an Arabic website for daily deals, was acquired by LivingSocial. GoNabit operates in the UAE, Egypt, Lebanon and Jordan, and claims to have saved consumers more than $5m in 2010-2011.{{citation needed|date=October 2011}} Group buying websites typically sign up a range of businesses to offer discounts, and take a percentage of the revenue.
* In June 2011, Dubai Based GoNabit, an Arabic website for daily deals, was acquired by LivingSocial.<ref name=":3">{{Cite web|url=https://techcrunch.com/2011/06/27/livingsocial-expands-daily-deals-empire-buys-ensogo-gonabit-and-dealkeren/|title=LivingSocial Expands Daily Deals Empire; Buys Ensogo, GoNabit And DealKeren|website=TechCrunch|language=en-US|access-date=2019-04-08}}</ref>
* In June 2011, LivingSocial acquired DealKeren, which offers daily deals in Indonesia, and its parent company [[Ensogo]], which offer daily deals in Thailand and the Philippines. Officially launched in June 2010, Ensogo currently has more than 800,000 members{{citation needed|date=October 2011}}. Ensogo claims that its members have saved more than $25 million USD in 2010-2011{{citation needed|date=October 2011}}. Ensogo is backed by Rebate Networks, an international [[venture capital]] group specializing in social commerce.<ref>{{cite web|url=http://techcrunch.com/2011/06/27/livingsocial-expands-daily-deals-empire-buys-ensogo-gonabit-and-dealkeren/ |title=LivingSocial Expands Daily Deals Empire; Buys Ensogo, GoNabit And DealKeren |work=[[TechCrunch]]}}</ref>
* In June 2011, LivingSocial acquired DealKeren, which offers daily deals in Indonesia, and its parent company [[Ensogo]], which offer daily deals in Thailand and the Philippines.<ref name=":3" />
*In August 2011, LivingSocial acquired TicketMonster for $350 million.<ref>{{Cite web|url=https://gigaom.com/2011/08/02/419-in-asia-push-livingsocial-buys-south-koreas-ticketmonster/,%20https://gigaom.com/2011/08/02/419-in-asia-push-livingsocial-buys-south-koreas-ticketmonster/|title=In Asia Push, LivingSocial Buys South Korea's TicketMonster|first=Laura|last=Owen|date=August 2, 2011|website=gigaom.com}}</ref> In November 2013, LivingSocial sold TicketMonster to Groupon for $260 million.<ref name="wilhelm">Alex Wilhelm, [https://techcrunch.com/2014/01/02/groupons-260m-acquisition-of-ticket-monster-from-livingsocial-has-closed/ "Groupon's $260M Acquisition of Ticket Monster from LivingSocial Has Closed,"], ''[[TechCrunch]]'', January 2, 2014.</ref> TicketMonster was later bought back by a consortium of investors led by [[Kohlberg Kravis Roberts|KKR]] in 2015, for $782 million.<ref>https://www.wsj.com/articles/groupon-to-sell-46-stake-in-ticket-monster-to-kkr-anchor-equity-1429535016M {{Dead link|date=February 2022}}</ref>
* In April 2012, ONOSYS, a mobile and online ordering providor, was acquired by LivingSocial. ONOSYS operates in Cleveland, Ohio, and services over 75 restaurant chains including Papa Johns International Inc., Panera Bread, and Applebee's International Inc.<ref>{{cite web|url=http://www.bloomberg.com/news/2012-04-26/livingsocial-acquires-online-ordering-system-provider-onosys.html |title=LivingSocial Buys Online Ordering System Provider ONOSYS |publisher=www.bloomberg.com |date= |accessdate=2012-04-26}}</ref>
* In April 2012, ONOSYS, a mobile and online ordering provider, was acquired by LivingSocial.<ref>{{cite news|url=https://www.bloomberg.com/news/2012-04-26/livingsocial-acquires-online-ordering-system-provider-onosys.html |title=LivingSocial Buys Online Ordering System Provider ONOSYS |publisher=www.bloomberg.com |access-date=2012-04-26}}</ref>


==References==
==References==
{{Reflist|2}}
{{Reflist|30em}}


==External links==
==External links==
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[[Category:Internet companies of the United States]]
[[Category:Sales promotion]]
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[[Category:Online retail companies of the United States]]
[[Category:Online marketplaces of the United States]]
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[[Category:Retail companies established in 2007]]
[[Category:Marketing companies established in 2007]]
[[Category:Internet properties established in 2007]]
[[Category:Marketing companies of the United States]]
[[Category:Marketing companies of the United States]]
[[Category:Deal of the day services]]
[[Category:Deal of the day services]]
[[Category:Companies based in Washington, D.C.]]
[[Category:2016 mergers and acquisitions]]

[[ta:லிவ்விங்சோசல்]]

Latest revision as of 04:51, 26 July 2024

LivingSocial
Type of site
Electronic commerce
Available inEnglish and others (for 27 countries)
HeadquartersChicago, U.S.
OwnerGroupon
Created by
Key people
  • Gautam Thakar
  • (CEO & President before company was acquired by Groupon)[1]
Revenue$536,000,000 (2012)[2] $57,000,000 (2015)[3]
URLLivingSocial.com
CommercialYes
LaunchedJune 29, 2007; 17 years ago (2007-06-29)[4] (as Hungry Machine)
Current statusActive

LivingSocial is an online marketplace that allows its registered users to buy and share things to do in their city.[5] Formerly headquartered in Washington, D.C., LivingSocial had roughly 70 million members around the world in 2013.[2] The company shrank from a peak of 4,500 employees in 2011 to about 200 in 2016.[6][7] LivingSocial was purchased by Groupon in 2016.

History

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LivingSocial was founded as Hungry Machine in 2007 by four employees from Revolution Health Group.[8] After acquiring BuyYourFriendADrink.com in 2009, LivingSocial launched a daily deals website.[9][10] The company offered its first deal in July 2009.[11] By July 2010, the company had launched deals in 25 cities.[11]

By 2011, LivingSocial had raised over $800 million in venture capital funds.[12] That same year, the company generated $238 million in revenue but lost $499 million.[7] In 2012, a class action lawsuit was filed against LivingSocial with respect to the expiration of deals, following a similar action against Groupon.[13] A provisional settlement was reached in November 2012.[14]

In 2012, the Government of the District of Columbia offered the company a number of tax breaks and incentives to open offices and hire workers in Washington, DC. However, a year later the company did not reach the size it needed to be for the tax breaks to kick in, as it had begun laying off workers and subleased offices it purchased earlier.[15] The company also announced it was changing its focus from daily deals to a website and mobile app.[15]

On April 26, 2013, it was announced that LivingSocial's database had been hacked, affecting 50 million registered users. While the announcement stated that credit card information not compromised, other user information including passwords was exposed.[16][17] On May 1, 2013, the Attorneys General of Connecticut and Maryland sent a joint letter to LivingSocial requesting additional information about the incident, as well as more details about the company's data management policies and procedures.[18]

By 2015, LivingSocial had 800 employees, down from a peak of 4,500 in 2011.[7][12] In 2016, it laid off half of its remaining workforce.[6] That year, The Washington Post reported that many laid off or departed workers formed new tech companies in LivingSocial's home city of Washington, DC.[19]

In October 2016, Groupon Inc. purchased LivingSocial for an undisclosed amount.[20] The Washington Post later reported this amount was $0.[21] Groupon began laying off all remaining employees and closed the LivingSocial D.C. office.[22]

Leadership changes

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In March 2012, co-founder Eddie Frederick stepped down as president and from the board of directors.[23] A year later in March 2013, co-founder and CTO Aaron Battalion stepped down from his post.[24] In January 2014, LivingSocial's CEO Tim O'Shaughnessy announced his resignation, remaining CEO until a replacement was named.[25] In July 2014, it was announced that Gautam Thakar, then-CEO of Shopping.com at eBay, would succeed the position of CEO at LivingSocial.[26]

Acquisitions

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  • In October 2010, LivingSocial announced acquisition of social adventure company Urban Escapes.[27]
  • In November 2010, LivingSocial bought $5 million controlling stake in Australian social shopping site Jump On It. In March 2012, LivingSocial purchased Jump On it for $40 million.[28]
  • In January 2011, LivingSocial acquired a majority stake in LetsBonus.[29] It sold LetsBonus in 2015.[30]
  • In March 2011, LivingSocial acquired InfoEther, a Ruby/Rails consultancy.[31]
  • In June 2011, Dubai Based GoNabit, an Arabic website for daily deals, was acquired by LivingSocial.[32]
  • In June 2011, LivingSocial acquired DealKeren, which offers daily deals in Indonesia, and its parent company Ensogo, which offer daily deals in Thailand and the Philippines.[32]
  • In August 2011, LivingSocial acquired TicketMonster for $350 million.[33] In November 2013, LivingSocial sold TicketMonster to Groupon for $260 million.[34] TicketMonster was later bought back by a consortium of investors led by KKR in 2015, for $782 million.[35]
  • In April 2012, ONOSYS, a mobile and online ordering provider, was acquired by LivingSocial.[36]

References

[edit]
  1. ^ "Groupon to lay off last 95 LivingSocial staffers, close D.C. office". Washington Business Journal.
  2. ^ a b "LivingSocial Company Profile". inc.com. Inc. Retrieved 19 June 2014.
  3. ^ "LivingSocial cuts its Q4 loss but revenue down, expenses up". Washington Business Journal. Retrieved 1 September 2016.
  4. ^ "HungryMachiene.com WHOIS, DNS, & Domain Info - DomainTools". WHOIS. Retrieved 2016-07-10.
  5. ^ "Company Overview of LivingSocial, Inc". www.businessweek.com. Bloomberg. Archived from the original on July 15, 2009. Retrieved 20 June 2014.
  6. ^ a b Peterson, Andrea. "LivingSocial is laying off more than half of its workers". Washington Post. Retrieved 1 Sep 2016.
  7. ^ a b c Issac, Mike and Benner, Katie. New York Times, Nov. 20, 2015. "LivingSocial Offers a Cautionary Tale to Today’s Unicorns". Accessed Sept. 1, 2016.
  8. ^ Empson, RIp (30 March 2012). "Confirmed: LivingSocial Co-founder Eddie Frederick Steps Down From Leadership, Board". TechCrunch.com. Tech Crunch. Retrieved 19 June 2014.
  9. ^ McCarthy, Caroline. "BuyYourFriendaDrink gets bought". www.cnet.com. CNet. Retrieved 19 June 2014.
  10. ^ Yarow, Jay. "Exclusive Q&A with LivingSocial CEO". Business Insider. Retrieved 19 June 2014.
  11. ^ a b Overly, Steven. "RIP LivingSocial: The fast rise and slow demise of a daily deals company". Washington Post. Retrieved 2019-03-21.
  12. ^ a b Isaac, Mike; Benner, Katie (2015-11-20). "LivingSocial Offers a Cautionary Tale to Today's Unicorns". The New York Times. ISSN 0362-4331. Retrieved 2019-04-08.
  13. ^ Washington Business Journal
  14. ^ Kamenetz, Anya (26 March 2013). "LivingSocial Ordered to Pay $4.1 Million to Settle Class Action Suit". fastcompany.com. Fast Company. Retrieved 19 June 2014.
  15. ^ a b O'Connell, Jonathan. The Washington Post, Oct. 6, 2013. "LivingSocial has yet to reach hiring and other goals to claim D.C. tax breaks. Accessed Sept. 1, 2015.
  16. ^ "Living Social Database Hacked; 50 Million customers impacted". redtape.nbcnews.com. Archived from the original on 2013-04-28. Retrieved 2013-04-26.
  17. ^ Dan Goodin (April 27, 2013). "Why LivingSocial's 50-million password breach is graver than you may think". Ars Technica. Retrieved November 8, 2014.
  18. ^ Radke, Bruce A.; Michael J. Waters (May 16, 2013). "Letter from Attorneys General to LivingSocial Can Serve as Guide for Companies Seeking to Protect Personal Information". The National Law Review. Vedder Price. ISSN 2161-3362.
  19. ^ Overly, Steven. "How LivingSocial is giving rise to the next wave of Washington start-ups". Washington Post. Retrieved 1 Sep 2016.
  20. ^ FitzGerald, Drew; Beckerman, Josh (2016-10-26). "Groupon Buys Rival LivingSocial, Reports Another Loss". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-10-27.
  21. ^ Overly, Steven (25 February 2017). "RIP LivingSocial: The fast rise and slow demise of a daily deals company". Retrieved 22 April 2018 – via www.washingtonpost.com.
  22. ^ "Learning the LivingSocial lesson: Let Amazon take the financial risk with HQ2, a former D.C. official says". www.bizjournals.com. Retrieved 2018-08-27.
  23. ^ Empson, Rip (30 March 2012). "Confirmed: LivingSocial Co-founder Eddie Frederick Steps Down From Leadership, Board". techcrunch.com. TechCrunch. Retrieved 4 September 2014.
  24. ^ "LivingSocial CTO Aaron Batalion to step down". wjla.com. Archived from the original on 26 March 2016. Retrieved 18 March 2016.
  25. ^ Flook, Bill. January 10, 2014, Washington Business Journal, "Exclusive: LivingSocial CEO Tim O'Shaughnessy to step down". Accessed March 3, 2014.
  26. ^ Stynes, Tess (15 July 2014). "LivingSocial Names Gautam Thakar CEO". Wall Street Journal. Retrieved 28 August 2014.
  27. ^ Grove, Jennifer Van (19 October 2010). "LivingSocial Acquires Adventure Company to Improve Daily Deals". Mashable. Retrieved 2019-04-08.
  28. ^ "LivingSocial jumps on Australian group-buying outfit". Sydney Morning Herald. March 2012. Retrieved 2016-07-11.
  29. ^ "LivingSocial acquires a majority stake in Let's Bonus". www.fusiondiginet.com. 13 January 2011. Retrieved 2011-04-13.
  30. ^ Lunden, Ingrid (2015-02-12). "LivingSocial Offloads Let's Bonus, Its Last Non-English Business [Updated]". TechCrunch. Retrieved 2023-03-14.
  31. ^ "LivingSocial gains wealth of ruby on rails expertise with Infoether acquisition". www.techcrunch.com. 14 March 2011. Retrieved 2011-04-13.
  32. ^ a b "LivingSocial Expands Daily Deals Empire; Buys Ensogo, GoNabit And DealKeren". TechCrunch. Retrieved 2019-04-08.
  33. ^ Owen, Laura (August 2, 2011). "In Asia Push, LivingSocial Buys South Korea's TicketMonster". gigaom.com.
  34. ^ Alex Wilhelm, "Groupon's $260M Acquisition of Ticket Monster from LivingSocial Has Closed,", TechCrunch, January 2, 2014.
  35. ^ https://www.wsj.com/articles/groupon-to-sell-46-stake-in-ticket-monster-to-kkr-anchor-equity-1429535016M [dead link‍]
  36. ^ "LivingSocial Buys Online Ordering System Provider ONOSYS". www.bloomberg.com. Retrieved 2012-04-26.
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