Investors, including (which had invested $175 million in 2010), ultimately saw significant losses on their investments as the company's valuation plummeted. Impact on Groupon
While the acquisition helped Groupon eliminate its primary competitor and gain high-value subscribers, the announcement initially received a lukewarm reception from investors. Groupon's stock dropped by roughly following the news, which was buried in a third-quarter earnings report that showed a net loss of $35.8 million. groupon buys livingsocial
The acquisition cost was described as "not material," meaning it was small enough that Groupon was not required to disclose the exact figure in its financial reports. Investors, including (which had invested $175 million in