In October 2016, the "daily deals" pioneer acquired its long-time rival LivingSocial , marking the end of a fierce era of competition in the social-buying space. The Deal at a Glance

LivingSocial's sale was a dramatic exit for a company that was once a tech darling. At its peak in 2011, it employed over 4,000 people and had raised nearly $1 billion in funding. However, by the time of the sale, its workforce had dwindled to roughly 200 employees through multiple rounds of layoffs.

The deal was part of a larger streamlining effort by Groupon to exit dozens of international markets and focus its operations on a core group of countries. Groupon Buys Rival LivingSocial, Reports Another Loss - WSJ

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.

The purchase occurred as the craze for daily deal vouchers—which had once seen LivingSocial valued at nearly $6 billion —began to fade. The Decline of a "Unicorn"

Groupon sought to absorb LivingSocial’s approximately 1 million active customers to expand its reach and consolidate the shrinking market.