LivingSocial Raises $110 Million to Build Cash Reserves in Case of ‘Bumps in the Road’
LivingSocial has raised $110 million in financing from existing board members and investors to “dedicate the resources we need, while also building a significant cash reserve against unanticipated events or bumps in the road,” according to a memo from CEO Tim O’Shaughnessy. Neither he nor the company commented on whether Amazon invested in this round. Not too much is known about this round of funding, which may suggest that this one is more complicated than previous rounds.
O’Shaughnessy’s mention of “unanticipated events or bumps in the road” isn’t surprising, given his company’s recent difficulties. At the end of January, Amazon’s 10-K filing indicated that LivingSocial posted a net loss of $650 million in 2012. Numbers from the filing also suggested that LivingSocial is worth $179 million. This followed the company’s firing of about 400 employees back in late November.
LivingSocial’s biggest rival, Groupon, is in the midst of a small revival. In the last month, Groupon’s stock has surged about 19 percent. At the start of Thursday, GRPN was trading at around $5.88.
In related news, both Groupon and LivingSocial have “Harlem Shake” videos:
