AMZN takes a huge hit on its LivingSocial investment:
Amazon Announces A Gigantic Loss On Its LivingSocial Investment
Joe Weisenthal
Business Insider
October 25, 2012
The daily deal bubble continues to burst.
Latest victim Amazon, which invested in LivingSocial, a private competitor of Groupon.
In its just-announced earnings, the company says:
"Net loss was $274 million in the third quarter, or $0.60 per diluted share, compared with net income of $63 million, or $0.14 per diluted share, in third quarter 2011. The third quarter 2012 includes a loss of $169 million, or $0.37 per diluted share, related to our equity-method share of the losses reported by LivingSocial, primarily attributable to its impairment charge of certain assets, including goodwill."
To put that that into perspective, the company invested $175 million in LivingSocial. So basically, complete wipe-out.
Read the full Amazon earnings coverage here >
http://www.businessinsider.com/amazon-announces-loss-on-livingsocial-2012-10 |
