When Groupon Inc., the daily-deals leader, filed for a $750 million IPO issue earlier last month, a ripple effect was expected, and here it is.
LivingSocial, the second-largest discounted deals operator, is said to be in talks with investment banks for an initial public offering that may value the company at $10 billion to $15 billion, according to a person with direct knowledge of the talks. It is seeking to raise about $1 billion in an IPO and has had conversations with Barclays Plc, JPMorgan Chase & Co. and Allen & Co. to lead the offering, said the person, who asked not to be named.
LivingSocial claims 24 percent of online daily deal revenue in top North American markets, according to a study released by Yipit. It gained 4 percentage points in May from a month earlier, while Groupon lost 4 points, dropping to 48 percent.
The companies deliver daily discounts on restaurants, hotels, events, and other goods and services. The daily-deal market may generate $3.9 billion in U.S. sales in 2015, compared with $873 million in 2010, according to research firm BIA/Kelsey in Chantilly, Virginia.
LivinSocial anticipates $ 1 billion in revenue this year.
With major tech companies going public, after LinkedIn, Pandora, and Yandex NV, it should be expected of the others on the forefront to soon follow suit.