Chinese deal site Gaopeng merges with rival FTuan

Chinese deal site Gaopeng merges with rival FTuan

Chinese daily deal site Gaopeng, a joint venture between Groupon and Tencent, is merging with rival FTuan. This will result in a new company that will combine FTuan’s service, which provides low-priced deals for dining and purchases, with Gaopeng’s global sourcing and group buying.

Under the deal, both brands will maintain their names as they attempt to increase their market share in a Chinese daily deals market that generated estimated revenue of USD676 million last year. After a turbulent year struggling to break China, Chicago-based Groupon will be a minority shareholder in the new company, as it was in Gaopeng. The move is part of Groupon’s move to deepen its partnership with Tencent, China’s biggest internet company, in the face of growing competition. Financial terms of the deal were not disclosed.

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