Groupon sacks CEO
Social discounts pioneer ejects CEO and co-founder Andrew Mason after poor financial results send shares tumbling
Social discounts website Group has sacked its co-founder and CEO Andrew Mason.
His dismissal came two days after the company reported an $80 million loss for its most recent financial quarter.
In a memo acquired by news agency Reuters, Mason admitted accountability for the company's recent failures. "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. Just kidding - I was fired today. If you're wondering why... you haven't been paying attention," Mason wrote.
"From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that's hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable."
Groupon, which pioneered the idea of offering group discounts over social media, raised $700 million in 2011 in what was most successful Internet IPO since Google's.
However, it took the company until May 2012 to make its first quarterly profit and the company has since fallen back into the red.
For the three months ending 31 December 2012, Groupon made an $80 million loss on revenues of $638 million. The news sent shares tumbling 24% to $4.43, well below the $20 share price on its IPO.
"On behalf of the entire Groupon Board, I want to thank Andrew for his leadership, his creativity and his deep loyalty to Groupon," the company's executive chairman Eric Lefkofsky said in a statement today. "As a founder, Andrew helped invent the daily deals space, leading Groupon to become one of the fastest growing companies in history."
"Groupon will continue to invest in growth, and we are confident that with our deep management team and market-leading position, the company is well positioned for the future," added vice chairman Ted Leonsis.