In another sign the daily deal market is losing market value, Chase picked up the assets of Bloomspot for $35 million, giving it the technology to improve the shopping experience for its cardholders. In much the same way American Express bought Revolution Money in 2009 and used it to help build its Serve product platform, Chase now has the information technology and resources to leverage against its retail franchise to build out loyalty and rewards programs.
From Bloomberg News:
After the sale to JPMorgan, investors in Bloomspot will receive a 67 percent return of invested capital, Malcolmson wrote in the e-mail. The deal is expected to be completed by the end of January.
“While we are disappointed that the deal is not generating a positive return for our investors, given alternatives, we believe this is a good outcome for our equity investors,” Malcolmson wrote.
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