LivingSocial Is Worth About $1.5 Billion
LivingSocial was compelled to step in and clear the air after PrivCo, a private company data specialist, released a report about the daily-deal company’s fresh round of $110 million in funding. The report, titled “LIVINGSOCIAL Receives Emergency $110M Debt Infusion From Existing Investors With Oppressive Terms,” captured the attention of many. LivingSocial CEO Tim O’Shaughnessy responded with a memo clarifying that the newest round of funding was an equity round, not a debt infusion. The memo also states that this was not an emergency round.
O’Shaughnessy also shed some light on LivingSocial’s valuation when he shared that the $110 million in funding was, indeed, a “down round” where 7.5 percent of the company was sold. This means that the company is worth nearly $1.5 billion.
“For comparison, our major competitor’s market cap is now $3.9B,” O’Shaughnessy noted.
“We are a company that does over half a billion in revenue,” he added. “If we stay diligent, we hope to turn the corner to become profitable soon.”
