Ticket Monster, or TMON, South Korea’s first deal-of-the-day website, seems to be struggling to find a good investor to shape its managerial direction and put the company on a solid financial footing.
On Friday, investment bank Goldman Sachs denied market reports that it was considering buying the social commerce firm, quashing hopes that the 4-year-old company will finally settle down.
News outlet MoneyToday on the day reported that the U.S. firm planned to purchase some or all stakes in Ticket Monster or create a strategic alliance with other Korean firms including GS Home Shopping, CJ O Shopping and SK Telecom for a joint takeover.
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| Daniel Shin, founder and chief executive of Ticket Monster. (Yonhap) |
“The reports of Goldman Sachs acquiring the management rights of Ticket Monster are groundless,” said a high-ranking official of the Korean branch of Goldman Sachs.
Up to 51 percent of TMON shares have been in the market for a while. The entire company is rumored to be up for sale after it failed to swing into the black this year. TMON posted 114.8 billion won ($104 million) in sales and 70.7 billion won in operating loss in 2013.
The company, established in 2010 by Daniel Shin, in his twenties, changed holding companies twice in less than four years. It was first acquired by U.S. social commerce LivingSocial for around $360 million in August 2011 and then by Groupon for $260 million in November 2013.
Market watchers suggested that TMON was having trouble with its holding firm due to different management styles.
“TMON is said to be having difficulty in implementing marketing and advertisement schemes due to conflicts stemming from a different business environment with its U.S. holding company,” an industry official said.
“That is why the company struggled and even lags behind other competitors like Coupang and WeMakePrice in recent days,” the official added.
They forecast that it would not be easy for the company to find a new owner or attract investments due to the neck-and-neck competition in the local commerce market. Some warn that TMON could be left behind in the market if the company fails to get itself back on track.
TMON, however, denied all reports.
“The company is just trying to raise funds for business expansion,” a company spokesman said.
By Kim Young-won (wone0102@heraldcorp.com)
