In its second-largest acquisition, Amazon buys the company for $970 million.
The leading online retailer sells 1.3 million coupons through LivingSocial in 24 hours.
Daily deal site LivingSocial sold more than 1.3 million discount vouchers for purchases at Amazon.com in what is easily the most-purchased daily deal offer for the young but red hot industry. The offer expired this morning.
Consumers could snag a $20 Amazon gift card for $10. Amazon, No. 1 in the Internet Retailer Top 500 Guide, said in December it would invest $175 million in LivingSocial, which competes with Groupon Inc. and other, smaller e-commerce companies that e-mail daily discount offers to consumers who sign up to receive those offers.
“I think we’ve showed the power of the LivingSocial platform combined with the power of a great deal,” says Tim O’Shaughnessy, CEO of LivingSocial.
The last big daily-deal offer was from Groupon, which in August offered $50 of merchandise from Gap Inc., No. 23 in the Top 500 Guide, for $25. Consumers bought more than 441,000 vouchers.