Groupon Acquires Campfire Labs

Groupon has moved to acquire start-up Campfire Labs which is working on a social network for online collaboration.

The acquisition, first reported by TechCruch, took place even before Campfire Labs had a chance to officially launch a product in the market.

The company was founded by former Head of International at YouTube Sakina Arsiwala and her husband Naveen Koorakula, who has previously worked in companies like Yahoo and Picch.

Campfire is building a social networking platform to help people collaborate and communicate online. The company had been funded by YouTube co-founder Steve Wu and former YouTube CFO Gideon Yu.

"Groupon has been the most effective driver of offline experiences, in addition to being the fastest growing company in history," Campfire Labs wrote on its website.

"When we started talking to Groupon, we realised how much synergy existed in our visions for a more social world, and it became a no-brainer for us to join forces with them. We are very happy to announce that we are now part of the Groupon family, and will continue to extend our work creating amazing social experiences for users," the company said.