Ted Leonsis (L) and Eric Lefkofsky, Groupon co-CEOs, give an interview to CNBC on the floor of the New York Stock Exchange, May 16, 2013.
Employees and guests of Groupon ring the opening bell in celebration of the company's IPO at the Nasdaq Market in New York in this November 4, 2011 file photo. Groupon Inc. reported better-then-expected quarterly revenue May 8, 2013, and shares of the world's largest daily deals company rose more than 10 percent.
Groupon Inc fired Andrew Mason as chief executive officer on Thursday, ousting a co-founder who captured headlines with his quirky style but failed to reverse a crumbling share price or stop a gradual erosion of its main daily deals business.
The leader in Internet daily deals launched a search for a new leader to turn the company around, the same day its stock slid 24 percent after a dismal quarterly results report.
In an unusually candid post-firing letter, Mason - known for his atypical sense of humor -confessed he was getting in the way of the company he co-founded just a few years ago, and had failed in his role as leader.
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. If you're wondering why... you haven't been paying attention, Mason wrote in a memo addressed to the People of Groupon and made available to Reuters.
People enter and leave Groupon Inc corporate office and headquarters in Chicago, Illinois in this November 4, 2011 file photograph. Groupon Inc lost a quarter of its market value on February 27, 2013 after the largest daily deal company reported disappointing quarterly results and issued a weak forecast.
The Groupon smartphone app is displayed on a Motorola Droid Bionic cell phone in Denver in this November 4, 2011 file photograph. Groupon Inc lost a quarter of its market value on February 27, 2013 after the largest daily deal company reported disappointing quarterly results and issued a weak forecast.
Groupon and its compatriots in the much-hyped daily deals business were supposed to change the very nature of small-business advertising. Instead, it is the daily deal vendors that are racing to change as evidence mounts that their business model is fundamentally flawed.
Groupon last week reported another quarter of disappointing earnings as its core business stagnated, sending its stock down 30 percent to an all-time low of $2.76. Its biggest rival, Living Social, is piling up losses, and part-owner Amazon.com earlier this month recorded a quarterly loss after writing down its Living Social investment.
Both companies are racing to diversify, venturing into more generic ecommerce areas like off-price sales through ventures such as Groupon Goods and LivingSocial's Shop. Meanwhile, upstarts are developing new variations on the discount coupon theme.
