The jobs never quite materialized as the daily deals business sputtered. Earlier this year LivingSocial announced plans to lay off 160 employees, more than half of a workforce that once numbered in the thousands. In 2014 the company said it would lay off 400 as part of the restructuring.
Groupon, long considered LivingSocial’s closest rival in the daily deals space, has also been struggling. On Wednesday, the company reported a loss of nearly $38 million on revenue of $720. 5 million in the quarter ending Sept. 30. Last year, Groupon said it would lay off more than 1,000 employees as it shuttered offices in six countries.
Groupon disclosed the acquisition Wednesday in a terse couple sentences in its earnings report, which did not offer details about the price, saying only that the amount was “not material” to its own financial balance sheet. Groupon said it expected to close the deal in early November. Representatives from LivingSocial did not immediately respond to requests for comment.
In a statement, LivingSocial said there would be “no change at this point” with respect to its consumer- and business-facing operations.
“This brings together the two pioneering companies in the local space to help merchants grow their business and consumers get great value on local services and activities,” LivingSocial said in a release.
A Groupon spokesperson emailed a statement implying there would be few immediate changes at LivingSocial as a result of the buy-out.
“While we evaluate the long-term options for the acquisition, it remains business as usual for LivingSocial customers, merchants and employees as we focus on a great Q4 and holiday season for both companies.”