Groupon Chief Executive sacked and shares rise

Company’s shares rise after founder publishes goodbye memo

The founder and Chief Executive of discount provider Groupon has been sacked following a larger than expected fall in sales and reduced profits margins.

Andrew Mason, who led the company through its floatation in November 2011, announced his departure on Thursday morning after the markets had reacted negatively to the company’s results following their publishing after Wednesday’s trading.

Groupon’s share price fell by 24% during Thursday trading, part of downward trend which has seen the company lose 77% of its market value since it’s floatation.

In a statement Mr Mason said “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.”

The company’s current executive chairman, Eric Lefkofsky, and vice chairman, Ted Leonsis, will be acting as temporary joint chief executives until a replacement for Andrew Mason can be appointed.

Following Mr Mason’s sacking Groupon’s share price rose to $5.10 USD during Friday trading, a 12.58% increase on the start price; a 2013 high.

Addressing the reasons for his sudden departure Mr Mason added that “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.

“You are doing amazing things at Groupon, and you deserve the outside world to give you a second chance. I’m getting in the way of that. A fresh CEO earns you that chance. The board is aligned behind the strategy we’ve shared over the last few months”.

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