Malaysia and Singapore-based entrepreneur Patrick Grove’s flash sales business shopping spree continued its onwards march as iBuy Group (ASX: IBY) bought LivingSocial’s Southeast Asia businesses for US$18.5 million just yesterday.
LivingSocial was operating in the Philippines, Thailand, Indonesia and Malaysia. The beleaguered daily deals company previously posted a net loss of $183 million for 2013, alongside a revenue of $399 million, which was a vast improvement from the company’s net loss of $653 million in 2012.
This sale is in line with its new strategy of reinvesting and focusing on its strategic growth plan, as they look to climb out of its unenviable state.
In this process, LivingSocial has sold a number of businesses that they no longer consider as priorities. Last November, they sold South Korea-based Ticket Monster to Groupon for $260 million in cash and shares. It had also ditched its event production business to focus intensely on discounts and coupons, a move which brings it full circle to its founding days.
“This sale will help us further our innovation investment, product development and marketing in the US and other regions in which we operate to best serve our merchant partners and consumers,” said John Bax, CFO of LivingSocial.
Grove’s iBuy Group had previously acquired three other daily deal sites as part of their journey towards an IPO in Australia.
(Image credit: Flickr user Elvert Barnes)