LivingSocial sells Ticket Monster to Groupon for $260m

LivingSocial announced it has entered into a definitive agreement to sell its Korean-based Ticket Monster business to Groupon for $260 million in cash and stock. This deal will allow LivingSocial to reinvest and focus on its core business and is expected to close in the first half of 2014.

"This transaction culminates after a many-month process during which we received several competitive offers. This is a great deal for LivingSocial, allowing us to monetise a non-core asset and increase focus on our core platform," said Tim O'Shaughnessy, CEO of LivingSocial. He continued: "Since LivingSocial's acquisition of Ticket Monster in 2011, both operations have evolved to meet their specific market needs. Today, Ticket Monster, while a great company, does not match our strategic direction, given that over half its business is goods-oriented. This sale will enable us to invest more aggressively in our marketplace innovation, product development and marketing in the US and other regions in which we operate."

About the deal
Per the terms of the agreement, Groupon will acquire the holding company that owns Ticket Monster, LivingSocial Korea. Any non-Korean assets currently owned by LivingSocial Korea will be divested prior to close. The agreement is for at least $100 million in cash, and up to $160 million in Groupon Class A common stock, with the final cash and stock allocation to be determined upon close. The transaction is subject to regulatory and other customary closing conditions, including review by Korean antitrust authorities.

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