Groupon to replace CEO Andrew Mason

Andrew Mason ousted

Groupon has announced that co-founder Andrew Mason will no longer hold the post of CEO just 24 hours after reporting its quarterly financial performance.

In an open letter to the Groupon staff, 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."

He then went on to say that as CEO, he was responsible for the quarterly revenue being lower than predicted and stock prices falling as a result of the financial performance.

Groupon announced that its revenue for the period would be $560m (£372.3m) to $610m (£405.6m), rather than the $647.7m (£430.7m) analysts had expected. These disappointing quarterly results then caused Groupon shares to lose around 27 percent of their value during afterhours trading.

What's next for Groupon?

Following the announcement of Andrew Mason being fired from Groupon, the daily deals business saw a rapid increase in stock price. The 12 percent rise took the $4.53 (£3.01) per share price to $5.10 (£3.39). While this is still much lower than in November 2011, when the stock was at $20 (£13.30) per share during its initial public offering, it could signal that investors see Mason leaving his CEO role as a positive direction for the organisation.

Kleon West, business development director at theEword, said: "Asking Andrew Mason to step down, and getting investors and directors Eric Lefkofsky and Ted Leonis to take over while looking for a new CEO implies that Groupon is looking for breathe new life into the business to win back support from within the company as well as from customers, merchants and investors."