But the social network’s advertising revenue grew 18.4% during the quarter.
The acquisition of LocalTwist will give the daily deal site a presence in Seattle.
Daily deal site BuyWithMe Inc. today announced it has acquired group-buying competitor LocalTwist from Facebook advertising network LifeStreet Media.
Terms of the deal were not disclosed.
The acquisition gives BuyWithMe a presence in Seattle and a larger market share in San Diego. BuyWithMe, founded in 2009, now operates in 27 markets.
“This acquisition is an important extension of our already rapid growth,” says Jim Crowley, CEO of BuyWithMe. “LocalTwist accelerates our presence and on-the-ground footprint in two key markets while further amplifying both our merchant network and consumer reach.”
BuyWithMe is part of a rapidly growing daily-deal market that has more than 200 competitors, according to BIA/Kelsey, a media research and consulting firm. A report earlier this week projected U.S. consumer spending on daily-deal sites will reach $1.25 billion this year, a 43% jump from $873 million in 2010.
However, Crowley, who was named CEO of BuyWithMe earlier this year, faces a challenge as market leaders Groupon and LivingSocial have already established footholds in more than 500 and 120 markets, respectively.