Photo: LivingSocial email screenshot
At our Social Commerce Summit yesterday, we were schmoozing with VCs and entrepreneurs, and one thing that caught us off guard was the negativity around LivingSocial.LivingSocial is in a rough spot, said gossipy investors. (And, it’s worth noting here that these people love to talk smack, especially about rival portfolio companies.)
The window for an IPO is about to close. They only have 6-12 months. And when it does file for an S1, the numbers will be so paltry compared to Groupon, it will have a hard time finding excited investors.
Heck, Groupon is having a hard time finding excited investors right now. How is LivingSocial at a much smaller scale going to do better?
Surely there’s room for a strong number two, right, we asked? The gossipers just shook their heads. They said LivingSocial will probably have to sell to a media company.
One name that was tossed out: Yahoo. These people had heard that Yahoo might buy LivingSocial as a part of its cash-free split deal with Alibaba and Yahoo Japan.
We didn’t reach out to LivingSocial for comment, because we thought they would just say, “no comment,” or something like, “This is silly, we’re doing very well, showing strong growth across all our lines of business.”
And that might be true! We’re just passing along what people are gossiping about.