As Starbucks Runs a Deal With LivingSocial, Groupon Stock Touches a New Low
Groupon’s stock dipped to an all-time low of $4.00 this morning after Starbucks announced it was going to offer a discount through the daily deal giant’s closest rival, LivingSocial. Despite that sting, however, the stock recovered and ended on the plus side, closing at $4.24, up about 2 percent.
LivingSocial, partly owned by Amazon, will be offering a $10 Starbucks gift card for $5 across the U.S. tomorrow, Reuters reported.
Just two weeks ago, Groupon lost its top national sales executive, who would have been in charge of brokering a deal of this kind.
Starbucks CEO Howard Schultz was an investor in Groupon before its IPO through his Maveron investment firm, and he served as a Groupon director until abruptly stepping down in April.
Starbucks has dabbled in the daily deals space before, having offered a $10 Starbucks gift card for half-off through Google Offers. That was while Schultz was still on Groupon’s board.
Starbucks said it anticipated selling at least one million deals through the latest offering.