LivingSocial Sold Its Remaining Assets in Southeast Asia for $18.5M
LivingSocial has decided to sell the last of its operations within Southeast Asia for a total amount of $18.5 million, the announcement was made on Tuesday, an arrangement that executives said this will add more cash towards its reserve as the company works there way onto getting back the right path of growth.
iBuy Group, a Singapore-based online deals company, will be purchasing LivingSocial’s operation within the Philippines, Thailand, Malaysia and Indonesia, which are known collectively as Ensogo Holdings.
Those locations were merely focused on selling daily deals an consumer goods, both line of business that LivingSocial has decided to stray away from in the past year. According to Chief Financial Officer John Bax during an interview.
“We had multiple parties approach us about Southeast Asia and in dealing with our local management there, we thought iBuy was the best fit and they produced an offer that was good for us,” Bax said.
“It’s a big war chest that we can use to compete on our platform around the globe,” he added. “You’ll see us get pretty aggressive on marketing and product innovation, and we can fund it all on one platform.”
Bax refused to comment on whether the Southeast Asian businesses were profitable or disclose whether the sale prices were even higher or lower than what LivingSocial had originally paid to acquire the firms in 2011
LivingSocial had came to a decision in shifting away from the daily deals last September, expanding the market option it offers to vendors to include online coupons and long-term deals, Executives have gone on to say that they plan to focus on growth, not profitability, during the 2014 year, as they try to increase their customer and merchant base on their site.
As part of the return growth, LivingSocial will continue to discard any business that is no longer considered a priority.
LivingSocial had previously made an agreement to sell South Korean-based Ticket Monster, of its largest overseas operations, to its rival e-commerce company Groupon for an amount of $260 million in cash and stock during the previous November. This deal was closed during the early January.