Amazon's Living Social Stake Sees Value Decline

The value of Amazon's
stake in LivingSocial fell in the second quarter, even though the daily-deals site reported 26% sequential revenue growth. The rising sales may be helping to validate demand for the online coupon business category. Deals rival Groupon's
shares are up 14% on the session, recovering from more than an 8% slide Thursday following poor results for social-related games-maker Zynga
and a negative Groupon reserach note from analyst Ken Sena at Evercore. Amazon's 29% stake in LivingSocial is now worth $271 million, down from $298 million in the first quarter, according to an SEC filing. LivingSocial total value is now $934.5 million, down from more than a $1 billion three months earlier. Revenue rose to $138 million. By comparison, it reported sales of $245 million for all of 2011, and a net loss of $558 million. The company is struggling with negative margins, however. LivingSocial reported a second-quarter loss of $93 million. It had earned $156 million in the prior quarter. LivingSocial cut more than a dozen employees this week, including three executives, in an effort to streamline and better compete with Groupon. The company said it had no immediate plans to file an IPO, in the wake of poot public debuts for Facebook
and Groupon. Facebook shares are down more than 35% from its IPO price in May; Groupon shares are down more than 60% since its debut late last year.

Posted In: EarningsNewsHot

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.