LivingSocial Opting for New Round of Funding Over IPO?

Daily deals platform LivingSocial is planning to raise more than $200 million in a new round of funding instead of filing for an initial public offering.

Two people with the knowledge of the situation told Business Week that the company is considering to go for a new round of funding that could value the company at nearly $6 billion.

The sources also revealed that the round of funding being considered by the company will involve both debt and equity. LivingSocial has hired JPMorgan Chase as an advisor for the funding.

LivingSocial was earlier planning to raise around $1 billion from its IPO but, taking into account the stock market uncertainties; the company has decided to go for funding instead. Sources claim that the company is most likely to postpone its IPO at a later date.

Some of the existing LivingSocial investors are expected to take part in the new round of funding along with new ones.

LivingSocial’s much larger rival Groupon has also decided to postpone its IPO due to prevailing market conditions.

Analysts were forced to reconsider the future of the daily deals and discounts market after social networking giant Facebook decided to set the sun on its daily deals offering.