Facebook to Close Daily Deals Service

NEW YORK ( TheStreet) -- Facebook is reportedly pulling the plug on its daily deals service.

According to Reuters, the social networking giant is ending its competition with Groupon and others who have entered the booming space of late after just four months of testing among its members. The service will be shuttering in "coming weeks," Facebook said in an emailed statement, the report stated.

Facebook has more than 750 million active users, but is facing increased competition from Google ( GOOG) and its Google Plus service.

The stakes are rising in the daily deals business as well with Groupon and LivingSocial both pursuing initial public offerings to build up their dry powder, and more and more players getting in the act, such as Local.com ( LOCM), which agreed to acquire the operator of the Screamin' Daily Deals web site in early July to augment its Spreebird offering.

-- Written by Michael Baron in New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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