Back in December, Schibsted announced that it has acquired 37,5% of the Swedish Letsdeal.se website. We had a chance to get a few comments from Alexander Hars, the CEO of the company about the deal and what this may mean for letsdeal.se. Schibsted is one of the largest online media groups in the Nordics and thus, this kind of a deal is significant to say the least.
Letsdeal.se was founded a year ago in January 2010 by Lars Karsson and Alexander Hars. Letsdeal.se is not their first company as earlier in the 2000s, they founded System OK, which developed a system restoration software called BackOnTrack. That company was acquired by Sonic Solution/Roxio for $11 million.
However, Letsdeal.se has already seen a fair amount of growth, despite being only a year old. The company itself enables the Groupon model to the Swedish consumers – giving over 50% discounts on daily deals. The figure many Groupon-kind sites show is the amount of money they’ve saved for their clients – for Letsdeal.se this is currently over 10 million Swedish kronor (1.1 million euros).
The growth has been fast, very fast. In the first three months, the company had already saved a million Swedish kronor, that figure grew to 5 million Swedish kronor in 7 months and 10 million Swedish kronor in 9 months. With figures like these, it’s no wonder Schibsted was interested in buying a piece.
The company currently serves three cities, Stockholm, Göteborg and Malmö. This is about to change with Schibsted. While Alexander Hors did not disclose anything, Schibsted operates in 15+ countries, so the company is surely going to expand.
Furthermore, the key reason behind the deal, for Letsdeal.se, was that they will be able to tap into the traffic streams generated by Schibsted. Alexander Hars stated that Schibsted will start to promote Letsdeal.se in their network to further generate traffic for the site.
Schibsted will also have the possibility to later acquire the remaining shares of the company. The price for the deal was not disclosed though.