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Groupon announces LivingSocial acquisition; shares plunge

Shares of Groupon plunged more than 22 percent Thursday after the company said in its earnings press release it would buy rival LivingSocial.

Groupon said Wednesday it entered into an agreement to acquire all of the outstanding shares of LivingSocial. The American e-commerce website did not say what it paid for the competitor, adding the "acquisition consideration is not material."

The company said the deal is expected to close by early November, subject to "satisfaction of customary closing conditions."

Meanwhile, Groupon posted a loss of a penny a share, in line with expectations, on revenue of $720 million. Wall Street expected the company to post revenue of $710 million, according to Thomson Reuters estimates.

Even with Thursday's declines, the stock is up more than 33 percent this year to date.

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