Andre Yoskowitz
1 Dec 2010 21:47
The rumor that Amazon is getting ready to purchase an investment stake in daily deal giant Living Social has gotten more intense today, following Google's $5.3 billion bid for market leader Groupon.
Amazon and Living Social are in "advanced talks" for a major investment by the e-tailer, one that will put the two companies in a "deep operating partnership."
While in advanced stages, the deal is not yet set in stone and Amazon could walk away at any time, notes the WSJ.
Groupon has 35 million worldwide users and over $500 million in annual revenue while Living Social has just under 10 million users and an expected revenue of $300 million for 2010.
The move would be Amazon's second venture into the fast growing daily deals market, where it purchased Woot for $100 million during the summer.
There was no word on how big the investment will be except to say that it will value Living Social in the "multi-billions."