Groupon fires its founder and CEO after business slumpsBy Mason White 10:56 AM March 4, 2013
By: Debbie Gross
(Scroll down for video) After a string of disappointments as a public company, Groupon, pulled the plug on its founder and CEO, saying in a statement that the leader has stepped aside for someone from the outside, according to press reports in the United States.
Now, that Groupon has fired its founder and CEO, the main question is whether the underlying business, the online shopping deals, is promising enough to reverse the decline in the stock price, declining revenue growth and declining interest from consumers.
Groupon’s Andrew Mason was fired last week, a day after the company reported a disappointing quarter amid concerns that people are getting tired of restaurant, spa and Botox deals that Groupon built its business on.
In a note to staff, the Groupon CEO Andrew Mason, admitted that he failed in this part of the business and said that the company’s employees deserve the outside world to give them a second chance.
The dismissal of Mason has been fairly widely expected given the results of the company and the surprise was how long it took.
But a new CEO may not be sufficient to address all the problems plaguing Groupon.
“The question is whether this as a business model that can last for the long term,” an analyst, said. “Groupon’s business is easy to replicate and is under pressure. The issue is where the company goes from here. Obviously something is not working,” the analyst added.
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