Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
The Internet giant is aggregating offers from several daily deal providers.
Yahoo Inc. said this week that it is trying its hand at the daily deal game by aggregating offers from more than a dozen deal-of-the-day sites, including Groupon, LivingSocial and BuyWithMe. Yahoo will provide the service only in limited U.S. markets for now, though Yahoo did not reveal those markets.
The daily deal sites working with Yahoo say that aggregating the offers in a central location can leverage the more than 180 million unique monthly visitors that visit Yahoo.com.
“This partnership provides us with an excellent opportunity to engage the Yahoo community with the same great deals that are available through LivingSocial,” says Tim O’Shaughnessy, LivingSocial CEO and co-founder.
The companies taking part in the service, which Yahoo calls Local Offers Program, will pay Yahoo an undisclosed share of revenue. Daily deal sites, which sell vouchers that enable consumers to save up to 90% off food, entertainment or products, typically earn about half of the revenue per offer.
Local Offers is aimed at helping consumers find the offers that best suit their lifestyles, says Matt Idema, Yahoo Local vice president.
“The local landscape is exploding with new sources of content and advertising and consumers want these experiences personalized just for them,” he says. “Yahoo is taking the complexity out of finding the great local deals that are most relevant to their interests and needs."