Groupon’s largest rival and fellow discount finder, Living Social (NASDAQ:AMZN), has tagged JP Morgan (NYSE:JPM), Bank of America (NYSE:BAC), and Deutsche Bank (NYSE:DB) as the lead underwriters for its forthcoming IPO. NY Times (NYSE:NYT) reports this afternoon that the company will look to raise $1 billion through its public stock offering, implying a valuation in the area of $10-15 billion. Perhaps through comparison to rival Groupon, Living Social has seen its valuation grow more than fourfold since April, when a financing round that raised $400 million in cash pegged the company’s worth at $3 billion.
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Even at $10 billion, Living Social would be worth $3 billion more than fellow social-media leader Twitter, but half of astounding $30 billion estimated worth of online coupon broker Groupon. Bubble talk anyone? CEO Tim O’Shaughnessy believes that his company (Living Social) is on track to book over $1 billion in revenues this year, though the company’s financial statements have yet to be made public.
Living Social jumps on the social media IPO bandwagon, which has already attracted leading names such as LinkedIn (NYSE:LNKD), Pandora (NYSE:P), with other companies such as Zynga and Groupon recently filing their initial paperwork. Competition looms for both Social and Groupon as the biggest names in technology, Google (NASDAQ:GOOG) and Facebook, have set their sights on the group discount business. Google is currently beta-testing its “Google Offers” service, a mobile discount finder that sends deals to customers’ phones, while Facebook has also said its interested in breaking into the market.