LivingSocial eying $1 billion IPO, report says

Reuters is reporting that the daily-deals site is in talks with investment bankers in a move that would value LivingSocial at between $10 billion and $15 billion.

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Don Reisinger
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Daily-deals provider LivingSocial could be nearing an initial public offering, Reuters is reporting.

Citing anonymous sources, Reuters says LivingSocial is currently in talks with investment banks to launch an IPO valued at $1 billion. The news service's sources say that at a $1 billion IPO, LivingSocial's valuation would range between $10 billion and $15 billion.

Earlier this month, daily-deals market leader Groupon announced its own IPO plans that could see the company raise $750 million on a valuation of between $15 billion and $20 billion.

Those moves toward an IPO aren't all that surprising. As of late, investors have shown that they're willing to invest in startups.

LinkedIn brought its shares to the New York Stock Exchange last month, and in the first day of trading, saw its stock price rise 109 percent to $94.25 from its starting point of $45 per share.

That strong showing was followed last month by the successful first day of trading for Russian search engine Yandex. The company's shares started the day at $25 per share, and ended it at $37.75.

Pandora's shares were up on its first day of trading, too, if only for a short while. The company started its first day earlier this month at $16 per share, and after its stock price soared to as high as about $26, it settled back down to $17.42.

However, it's longevity that investors are after. And since the initial gains by Pandora and Yandex, the companies' shares have slid a bit. LinkedIn's shares are currently hovering at $87.99, while Yandex is down from its first day of trading to $34.78. Pandora bucked the trend, ending yesterday up to $17.50.

With LivingSocial potentially eying an IPO, the company is joining a growing number of companies that are also rumored to be considering going public, including the world's largest social network, Facebook. Social-gaming company Zynga is expected to make its IPO intentions known in the very near future.

LivingSocial did not immediately respond to CNET's request for comment.