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Uploaded: Friday, March 1, 2013, 9:43 AM
Groupon CEO: 'I was fired'
Company's stock down 24 percent; office in Palo Alto
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by Eric Van Susteren
Palo Alto Weekly Staff
After a poor earnings report sent Groupon's stock down by 24 percent, the company fired its CEO, Andrew Mason, Thursday, according to a letter to Mason wrote to employees in a surprisingly candid tone.
"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," he wrote in a note to employees. "Just kidding — I was fired today. If you're wondering why ... you haven't been paying attention."
The company announced a loss of $81.4 million during the fourth quarter of 2012.
"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," Mason wrote.
Revenue increased 30 percent year-over-year to $638.3 million compared to $492.2 million in the fourth quarter of 2011, but the company expects first-quarter revenue for 2013 to be between $560 million and $610 million, far below the $650 million analyst projection.
Chicago-based Groupon, which has an office on Park Boulevard in Palo Alto, was founded by Mason in 2008. The company offers coupons that give deep discounts on goods and services of local companies and takes part of the money customers pay for the coupons.
Groupon's stock price is now less than a quarter of the $20 per share it was at its initial public offering in November 2011.Are you receiving Express, our free daily e-mail edition? See a sample and sign-up for Express.
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Posted by Observer, a resident of Another Palo Alto neighborhood, on Mar 1, 2013 at 9:58 am Mr. Mason should seek employment in the public sector for his next job. Poor performance is not a reason for dismissal in that domain.
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Posted by incompetent millionaire, a resident of the Adobe-Meadows neighborhood, on Mar 1, 2013 at 10:08 am Like many other corporate executives, Andrew Mason got in over his head and his arrogance and stubbornness ruined not just his job but also the jobs of hundreds of others.
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Posted by Chris Zaharias, a resident of the Crescent Park neighborhood, on Mar 1, 2013 at 10:55 am The guy said he's accountable, but he should've said he's at fault - that would've actually been candid. His letter was the departure letter equivalent of settling out of court while not admitting guilt.
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Posted by neighbor, a resident of Another Palo Alto neighborhood, on Mar 1, 2013 at 1:36 pm This is a smart guy and he will rise again, like many other tech founders.
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Posted by Candida, a resident of the Crescent Park neighborhood, on Mar 1, 2013 at 1:56 pm Any tech company with its main office in Chicago -- no wonder they didn't have the brains to succeed. Jeez, is this Silicon Valley elitism speaking?
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Posted by Janeq, a resident of the Green Acres neighborhood, on Mar 1, 2013 at 2:55 pm I wish him well. With what Obama has done to our economy, how is any company to guarantee anything
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Posted by incompetent millionaire, a resident of the Adobe-Meadows neighborhood, on Mar 1, 2013 at 3:16 pm How quickly the Fox News fans are brain washed. The economy crashed under George Bush. Obama has brought the stock markets back to near record highs.
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Posted by Mike, a resident of the University South neighborhood, on Mar 1, 2013 at 3:59 pm I can only assume Mr. Mason is a millionaire several times over and received an obscene severance. Please tell me I am wrong.
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Posted by Leonard, a resident of the Old Palo Alto neighborhood, on Mar 2, 2013 at 8:26 am Coupon will be history by the end of 2014.
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Posted by Ladera Cyclist, a resident of Portola Valley, on Mar 2, 2013 at 10:32 am He made plenty of money from the IPO, but his severance was less than $400 (plus six months of health benefits). See:
Web Link
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Posted by Cedric de La Beaujardiere, a resident of the Barron Park neighborhood, on Mar 4, 2013 at 12:54 am
Cedric de La Beaujardiere is a member (registered user) of Palo Alto Online I recently watched a program on KQED Channel 9 about early silicon valley entrepreneurs, maybe it was "Something Ventured (Web Link). Anyway, one of the people interviewed said something to the effect that original founders of companies rarely last long in their position after the company either gets venture capital or goes public (I don't recall which, probably the later). It's probably a very different skill set to come up with a good idea and make it happen, than to create and run a company, and set and meet quarterly goals. It must be traumatic to be pushed out of the company one has created. Presumably, that trauma is assuaged somewhat if one has gotten millions of dollars through the venture.
The article Ladera Cyclist linked to says, "It's unclear why the famously quirky Mason chose the strangely precise figure of $756.72" for his annual salary. I notice that (7+5)*6=72, though that doesn't explain anything.
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