May 23rd, 2011 : posted in News by M Bryant
James Packer has made a significant investment into daily deals sites Catch of the Day and Scoopon, partnering with a consortium of other investors.
Packer’s Consolidated Press Holdings and Tiger Global Management teamed up with Andrew Bassat, co-founder of Seek, and Glenn Poswell of Gannet Capital.
The group have purchased 40 percent of the deals business that is owned by brothers Gabby and Hezi Leibovich. The total investment is said to be $80m.
“It is still early days in Australia when it comes to online retail, and to support our next phase of growth we were open to overseas investors who could share a different perspective into the online retail market, as well as bring new skills, advice and contacts to further our growth and expansion,” said Gabby Leibovich in a statement.
The brothers will retain a controlling share in the company, though Tiger’s Lee Fixel and Seek’s Jason Lenga will join them as board members.
Packer is confident that the brothers will continue to grow the business.
“Unlike many other players in the market, the team’s proven experience in building profitable e-commerce businesses means they have the skills, supplier networks and economies of scale to keep growing and leading the market,” said Packer.
Scoopon is still in a legal battle with Groupon over the Groupon.com.au domain, though the investment group told ZDNet in a statement that it had not deterred them from investing.