Struggling online deals pioneer Groupon Inc. said Thursday that it ousted Chief Executive Andrew Mason and will look for a new chief.
Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis were appointed to the office of the chief executive while a replacement is found.
Thursday's announcement after the stock market closed came as little surprise. The move had been expected for months.
The announcement came a day after Groupon reported a bigger-than-expected loss and gave a weak revenue outlook for the current quarter. The guidance had fueled investor worry that people are tiring of the myriad online restaurant, spa and Botox deals that Groupon built its business on, and that the company's efforts to broaden into an e-commerce powerhouse haven't been paying off.
Groupon, which went public in November 2011, makes money by taking a cut from the online deals it offers on a variety of goods and services. Investors have questioned whether that business model is sustainable and leads to growth over the long term — and whether the company not only can grow its customer base but also make more from each subscriber.
Groupon's stock, which lost almost a quarter of its value in regular trading Thursday, was up nearly 7% after hours.
Struggling Groupon ousts CEO Andrew Mason
This article
Struggling Groupon ousts CEO Andrew Mason
can be opened in url
http://throwingnews.blogspot.com/2013/02/struggling-groupon-ousts-ceo-andrew.html
Struggling Groupon ousts CEO Andrew Mason
