Winnipeg Free Press - PRINT EDITION
Posted: 03/1/2013 1:00 AM | Comments: 0
NEW YORK -- Struggling online-deals pioneer Groupon has ousted its quirky founder and CEO Andrew Mason amid worries people are tiring of the myriad online restaurant, spa and Botox deals Groupon built its business on.
Shares jumped after Thursday's announcement, which had been anticipated for months. Executive chairman Eric Lefkofsky and vice-chairman Ted Leonsis were appointed to the office of the chief executive while a replacement is found.
"I've decided that I'd like to spend more time with my family. Just kidding -- I was fired today," Mason, 32, wrote in a memo to staff. "If you're wondering why, you haven't been paying attention."
He referred to controversial metrics used in its regulatory filings ahead of Groupon Inc.'s November 2011 initial public offering of stock as well as "two quarters of missing our own expectations and a stock price that's hovering around one-quarter of our listing price."
The announcement came one day after Groupon reported a bigger-than-expected loss and gave a weak revenue outlook for the current quarter. The guidance had fuelled investor worry, which started even before Groupon's IPO, that people are suffering from fatigue over the frequent emails flooding subscribers' inboxes. There were also worries that the company's efforts to broaden into an e-commerce powerhouse haven't been paying off.
-- The Associated Press
Republished from the Winnipeg Free Press print edition March 1, 2013 B6
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
Bank of Cda makes molehill from mountain
Report: More acidic seawater poses risks in Alaska
Mineral company, band sign agreement
China investigating Microsoft in monopoly case
Developers release first mobile game in series
Canadian dollar moves lower as Fed meets
New owner, new quality focus for Red Lobster
TSX to open higher amid mixed earnings
Waste Management selling subsidiary for $1.94B
UPS 2Q profit drops, lowers outlook on spending
Reynolds American 2Q profit climbs 6.7 per cent
Pfizer's 2Q profit sinks 79 pct but tops forecasts
Merck 2Q profit more than doubles
Talisman Energy has Q2 net loss of $237M
Aetna 2Q profit rises 2.4 per cent
McDonald's Japan to strengthen checks on chicken
EU clears state aid for ailing Polish carrier LOT
WestJet has net profit of $51.8M in Q2
BP warns of impact of Russia sanctions on profits
China to put Glaxo investigators on trial Aug. 8
Senate Dems seek to split GOP on export bank
Senate to vote on highway money as deadline looms
2-day lobster harvest at Biscayne National Park
Avoiding plane crashes as air traffic doubles
Honda's quarterly profit up on Asian sales growth
Swiss bank UBS reports 2Q net profit jump
Asia stocks widen gains ahead of US, China data
Study: 35 per cent in US facing debt collectors