Dan Primack

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Deal of the Day: Amazon pumps up LivingSocial

December 3, 2010: 10:33 AM ET

The Term Sheet sends out an email each morning (sign up here), which includes blurbs on all of the day's venture capital and private equity news, plus any other notable M&A activities. It also picks one deal to highlight. Here is what got today's top billing:

LivingSocial, a Washington, D.C.-based online deals site, has secured a $175 million investment fromĀ Amazon.com (AMZN). It also raised $7 million in new funding from existing shareholder Lightspeed Venture Partners. Prior to these infusions, LivingSocial had raised over $30 million from Lightspeed, U.S. Venture Partners, Grotech Ventures and Revolution LLC.

This is today's big deal for a variety of reasons:

First, the dollar amount is absolutely enormous. For context, rival Groupon's total VC funding falls short of Amazon's investment in LivingSocial.

Second, it is entirely possible that this deal could have an impact on the final Google-Groupon acquisition price, as LivingSocial now looks poised to make a real competitive run.

Third, the Google-Groupon deal ultimately could make this investment look like Bezos' folly, since LivingSocial could have a tough time getting visibility on the world's largest search site.

Finally, it's been a long time since I've seen so much investor hyperactivity in an online vertical. Not just LivingSocial and Groupon, but also new funding rounds (see below) for Lashou and WhaleShark Media. Hey tail, stop wagging that dog…

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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