BuyWithMe has discovered that acquisition as a growth strategy does not always work. The No. 3 daily deals site behind Groupon and Living Social has laid off the bulk of its staff in what is described as a “last ditch effort” to sell the company, according to the firm’s former marketing director Ian Boschen. BuyWithMe raised $21.5 million in funding in 2010 and by some accounts burned through that cash by buying up deal sites such as Scoop St, DealADayOnline, Swoop, LocalTwist, and loyalty program Edhance. The company was also building its own technology in a bid to attract national business.
But BuyWithMe was also facing a bigger problem: competition from sites such as Amazon and Google, which have brand recognition and the cash to move in the space both locally and nationally.
Read more at Venture Beat.