* O'Shaughnessy says may consider IPO in future
* Says learning lessons from other recent tech IPOs
* LivingSocial CFO says has halted raising more capital
By Jasmin Melvin
WASHINGTON, June 20 LivingSocial chief executive
Tim O'Shaughnessy said on Wednesday that the online daily-deal
company has no immediate desire to go public and is learning
lessons from the rocky public debuts of other hot tech
LivingSocial had been expected to follow in rival Groupon
Inc's footsteps when Groupon went public in November.
Talk of a LivingSocial IPO subsided earlier this year after
Wall Street became increasingly skeptical of the long-term
potential of the daily-deal model, which is highly competitive
and has low barriers to entry. Groupon's stock is trading at
roughly half of its $20 IPO debut level.
O'Shaughnessy, speaking at a media event on Wednesday, said
he sees only four reasons for a company to go public: "They want
a branding event, they need access to capital, they need
liquidity or they need a currency that's marked to do lots of
"If any of those four things is ever very prohibitive to us,
then it's something that we would look at doing," he said.
O'Shaughnessy said the company would take into account
lessons learned from the IPOs of Groupon and social networking
site Facebook Inc which has lost roughly 17 percent of
its market value since its overly hyped IPO last month.
LivingSocial, which lost $558 million last year, has been
trying to diversify its offerings to show it is more than just a
The company has been rolling out new services in recent
quarters - such as live entertainment and package experiences
like a sushi meal followed by professional sumo wrestling - that
expand beyond the original discounted daily deal approach.
New services launched in the last 18 months, including
travel deals and a partnership with Amazon.com, now
bring in over 25 percent of LivingSocial's revenue.
Amazon owns roughly 30 percent of LivingSocial.
John Bax, LivingSocial's chief financial officer, said the
company has halted raising additional capital since securing
about $176 million in financing earlier this year.
O'Shaughnessy said his goal is to make LivingSocial the
"default" when thinking of local commerce, similar to how Google
Inc comes to mind when thinking about Internet search.
"I want (it) to be something that when you wake up in the
morning, one of the very first things you do is hit the
LivingSocial app, and when you get to work it be a tab you keep
open all day long," he said.
LivingSocial, with more than 60 million members, is second
to Groupon in the online-deals market. But its 26 percent market
share in North America is more than twice any of its other
The company is currently weighing expanding nationwide an
event listings service that it began testing in Los Angeles two