LivingSocial invests in Let's Bonus

In exchange, LivingSocial gets a majority stake in the European group buying site

LivingSocial continues its quest to keep stride with Groupon.  Shortly after Groupon announced that it has expanded into India, South Africa, and Israel, LivingSocial also announced that it is expanding its international presence with the acquisition of a majority stake in Let’s Bonus, a group buying website that was recently launched in Barcelona and now serves much of Europe.  The terms of the deal were not disclosed. 

The majority stake will help LivingSocial CEO Tim O’Shaughnessy make good on his promise to double the company’s markets this year.   This brings LivingSocial to 25 new markets across Spain, Italy, Portugal, Argentina, and Mexico.  The company’s subscribers now number 16 million in more than 170 markets in ten countries.  Compare this to Groupon’s 50 million subscribers across 500 markets in 40 countries. 

LivingSocial expects to book upwards of $500 million in revenue this year, which will put it on par with estimates of how much Groupon made last year.

"Not only is LivingSocial available in ten countries, but with this acquisition we've gone multilingual, offering deals in Spanish, Italian and Portuguese. We're thrilled to expand our footprint with a company that believes in building the same great merchant and consumer relationships that LivingSocial has always upheld,” said LivingSocial CEO Tim O’Shaughnessy, in a prepared statement.

Founded in September 2009, Let’s Bonus is the leading group buying website in the Spanish market and has a sales team of more than 200 employees.  Additionally, Let’s Bonus’ discounted travel packages expands LivingSocial Escapes’ international presence, bringing more European vacation deals to LivingSocial subscribers.

In November, LivingSocial made a similar move to expand its footprint to Australia by investing $5 million in Australian group buying site JumpOnIt.com, in exchange for a majority stake in the company.

LivingSocial also announced Thursday morning that it has launched in nine new U.S. markets, including Scottsdale, AZ; Ann Arbor, MI; Jackson, MS; San Diego – North County, CA; Boston – North Shore, MA; Gainesville, FL; Madison, WI; Plano, TX and Snohomish County, WA.

One place it’s not looking to be is on the landing page of a daily deal aggregator’s website.  LivingSocial cut off all ties with daily deal aggregators like Yipit last week, with no explanation. One source at a daily deal aggregator told the San Francisco Chronicle that LivingSocial had claimed that it didn’t want its money reinvested in the same keywords that LivingSocial advertises against.

Image source: letsbonus.com