Local.com Picks Up Group-Buying Service iTwango

Local.com is making a play in the ever-more-crowded group-buying space, purchasing iTwango, a startup that has developed a group-buying platform. The local search company says it will re-brand iTwango and distribute offers widely across Local.com as well as its network of local sites; it’s also planning on letting partners use the product to launch daily deals services under their own brand names.

Local.com made the announcement on the same day that it cut its earnings outlook saying it had seen “a material reduction” in revenues from Yahoo (NSDQ: YHOO) due to the search engine’s integration with Microsoft’s Bing. The company warned that it might take additional months to adapt to the integration of Yahoo and Bing and that in the meantime it was diversifying its products, in part by entering the group-buying space. That wasn’t enough to calm investors, and the stock dropped nearly 25 percent