Groupon fires its CEO
Andrew Mason is out after a terrible quarterly earnings report that showed losses were growing. The daily-deals company is now seeking a replacement.
Groupon (GRPN) has ousted Chief Executive Andrew Mason after a terrible quarterly earnings report that disappointed analysts and investors.The move is hardly a surprise. My colleague Jonathan Berr reported earlier Thursday that the board was considering dropping Mason, one of Groupon's founders. The stock fell 24% Thursday to close at $4.53.
Groupon is now looking for a new CEO. Until one is found, co-founder Eric Lefkofsky and vice chairman Ted Leonisis will act as co-CEOs, the company said in a statement.
Mason did not have any comment published in the news release announcing the change. But Lefkofsky thanked Mason on behalf of the board for his leadership, creativity and loyalty. "Andrew helped invent the daily deals space, leading Groupon to become one of the fastest growing companies in history," Lefkofsky said in the statement.
Groupon on Wednesday reported an $81 million loss in its latest quarter, far more than what Wall Street analysts were expecting. Revenue rose 29.7% to $638.3 million, just shy of the $640 million Wall Street wanted to see.
The AllThingsD site published an internal memo from Mason announcing his ouster. Mason approached the news with his signature sense of humor:
"After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family," he wrote. "Just kidding -- I was fired today. If you’re wondering why. . . you haven’t been paying attention.
Mason added that he was OK with having failed in his role. "If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through," he said, referring to the old video-game franchise. "I am so lucky to have had the opportunity to take the company this far with all of you."
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