As has been reported elsewhere LivingSocial invested $5 million to buy a controlling stake in Australia’s leading group buying site Jump On It. It’s interesting that LivingSocial didn’t make an acquisition outright but bought a majority stake instead.
- 10 million subscribers
- 100 markets (US, UK, Ireland, Aus)
- Currently earning $1 million a day, and is projected to earn well over $500 million in revenue in 2011. (Ka-ching!)
If LivingSocial is truly in a position to make $500M in 2011 it would value the company, probably, at more than $2 billion. There really has never been a marketing phenomenon like daily deals.
It burns very brightly and may decline equally rapidly in the future. But we’ll see.