Fixed Mobile Convergence

Groupon.com is hoping to capitalize on the world’s most populous Internet market: China. According to an Associated Press (News - Alert) report, the discount coupon site has launched a version in China known as Gaopeng.com.

This latest move is part of the company’s partnership with China’s Tencent.com, a popular website that offers such things as entertainment, e-commerce and other services.

With more than 450 million people online in China, the Internet market is intensely competitive. In fact, the landscape is so intense that global eCommerce services such as eBay have struggled to gain a true presence against local rivals.

According to Groupon, the new site will offer subscribers discounts on shopping, eating and entertainment in Shanghai and Beijing. Plans call for expanding the service later to other major Chinese cities.

The company shared in a statement that the collaboration with Tencent.com will combine Groupon’s global group-buying experience with Tencent’s in-depth knowledge of Chinese online communities.

A total of $950 million was raised by Groupon for this project, primarily from private investors. The company will use the funds for expansion.

Gaopeng.com investors include Yunfeng Capital, founded by a group of Chinese business figures, such as Jack Ma, chairman of Chinese online commerce giant Alibaba.

In other Groupon news, TMCnet recently reported that LivingSocial has released iPhone (News - Alert), iPad and Android apps that broadcast daily coupons in a user’s current city. This release comes on the heels of a mobile app for the iPhone, Android (News - Alert), and BlackBerry platforms that Groupon released two weeks ago.

Late last year, the company announced the expansion of its Silicon Valley office and the acquisition of San Mateo-based Ludic Labs, the privately-owned marketing firm behind advertising and deals services like Offer Foundry and Diddit.

In January, TMCnet reported that the group-buying website had met with a number of investment banks and was seriously considering going public at some point in 2011. This information was captured by the Wall Street Journal from people close to the situation.

Two anonymous sources also told The New York Times that several of the bankers anticipate that a future offering could value the company at as much as $15 billion.

Groupon was founded by Andrew Mason in Chicago in November of 2008. Its main focus is to e-mail subscribers coupons that are targeted to their location for restaurants, services like yoga classes, and other activities.