Groupon fires its CEO as worries grow about the daily deals market
Deal of the day giant Groupon has fired its CEO Andrew Mason, effective immediately . Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis were appointed to the office of the Chief Executive while a replacement is found, said USA Today. Mason's jacket has been rumoured for months to be on a shaky peg amid growing concerns for the company's future. Rival LivingSocial raised anxiety about the online deals business last month, posting a $650 million net loss for last year. Groupon's announcement came today after the close of markets. In a letter posted online, Mason wrote: "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." He listed the hurdles that have tripped up Groupon during its relatively brief existence, including "controversial metrics" initially used in the company's regulatory filings and its depleted market value, said the WSJ . "As CEO, I am accountable,". Mason wrote. Losses from the Chicago-based company hit $81.1 million in the fourth quarter, wider than its $65.4 million loss a year earlier. Results were particularly hit by one business that sells merchandise directly to customers, known as Groupon Goods. said the WSJ The stock is down 76% since its 2011 initial public offering at $20 a share, though shares are still ahead of the all-time low of $2.60 in November. Shares of Groupon jumped 5.5% in after-hours trading on the news. The company on Wednesday reported disappointing earnings that sent shares 25% lower in after-hours trading.