Photo: Business Insider
LivingSocial is talking to bankers about going public at a $10 billion to $15 billion valuation, CNBC reports.LivingSocial started its life as a Facebook app, but it eventually evolved into the very most successful Groupon clone.
Groupon, which filed its S-1 earlier this month, is also planning to IPO soon. It hopes to raise $750 million. The valuation is expected to be around $30 billion.
In April, we learned that LivingSocial revenues are expected to reach $1 billion this year. Groupon lost $413 million in 2010 on $713 million revenues.
The big challenge facing both Groupon and LivingSocial is a host of competitors – from startups to established players like Google and Facebook. This competition is making it more expensive for both companies to acquire new email subscribers. It’s also forcing them to cut better deals for local merchants.
Amazon invested $175 million in LivingSocial in December 2010.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.