LivingSocial Financials Exposed: $2.9 Billion Valuation, $50 Million In Revenue Per Month

There’s nothing like full disclosure during the negotiating process in an acquisition deal. LivingSocial acquired SocialMedia for just $3 million in stock, we reported earlier today. As part of the negotiating process they disclosed key financial information to SocialMedia to help that company understand the value of the stock they were receiving in the deal. That information is now in my inbox.

SociaMedia is getting around 545,000 shares of common stock of LivingSocial, valued at $3 million. That implies that there are approximately 520 million shares outstanding. At the recent Series E preferred price of $5.65 per share (which is what most people would use for valuation purposes), LivingSocial is a $2.9 billion company.

LivingSocial is no Groupon when it comes to revenue, but it’s doing just fine. February revenue was $50 million, says our source, and projected revenue for 2011 (assumed calendar) is a cool $1 billion. Our best guess on Groupon revenue in February was a little under $100 million, so it’s roughly twice the size of LivingSocial.

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LivingSocial Acquires SocialMedia For $3 Million

Fast growing daily deal service LivingSocial, which just raised $400 million, has acquired long suffering social advertising network SocialMedia, we’ve confirmed. The price was just $3 million, all in LivingSocial stock. Unfortunately, the company had raised around $10 million from Charles River Ventures, Marc Andreessen, Naval Ravikant and Jeff Clavier.
SocialMedia’s biggest asset today is probably its domain name. But a couple of years ago the company was tearing it up. They were one of the first companies to create a Facebook ad network that used your friends’ pictures in the ads. 2008 revenue was $15 million, and 2009 revenue was on pace to hit $25 million. Facebook tried to acquire the company, says one source. SocialMedia declined, and shortly afterwards Facebook threatened legal action against them for privacy policy violations.
What’s most fascinating about the acquisition isn’t the soft landing that the company has pulled off. It’s LivingSocial’s financials and capitalization information, disclosed during the deal negotiations, that has now landed in my inbox. More on that in a follow up post.
Update: LivingSocial Financials Exposed: $2.9 Billion Valuation, $50 Million In Revenue Per Month

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LivingSocial Pulls A Groupon … And $200 Million Off The Table

Fortune’s Dan Primack reports that the LivingSocial management and investors have pocketed about half of the $400 million in new VC money they raised at the beginning of the month, citing this SEC filing.

This cashing out early thing is not without precedent, in fact leader in the daily deals space Groupon pulled a similar endeavor during its DST round last April and in January, where it took $573 million off of the table after its $950 million round of funding, allowing founder Andrew Mason to solve what he called “the money problem” or the temptation to succumb to buyout offers (like Google’s 6 billion) because you feel like you need the money.

LivingSocial has raised a total of $632 million in funding from Steve Case, Grotech Ventures, US Venture Partners, Amazon, T.Rowe Price and others. I’ve contacted the company for more information and will update this post if it responds with anything useful.

READ MORE » LivingSocial Pulls A Groupon … And $200 Million Off The Table