Andrew Mason to Remain CEO of Groupon

Rumors that Groupon’s board will be replacing founder and CEO Andrew Mason have been laid to rest. Following a company board meeting on Thursday, it was decided that Mason will continue to serve as chief executive for the daily deal site, amid concerns that the company has outgrown its young founder.

Daily deals have taken in a hit recent months. LivingSocial, another daily deals site, laid off 10 percent of its workforce yesterday to better align its cost structure toward toward its goals for marketing, mobile, and recruitment of additional technology staff.

Groupon has diversified its offerings over the last year, adding a merchant payments system and point of sale terminal to facilitate orders for small business owners. The company is also showing growth in its Goods department, which set a new record in sales over the four-day holiday weekend and outpaced growth of deals like restaurant vouchers and spa services for the second quarter of 2012.

Groupon’s shares are down 80 percent since the company made its stock market debut in 2011. Mason had said at the Business Insider Ignition conference earlier this week that “We have built up a resiliency to the external noise, because we know that what is in the best interests of our shareholders is not optimizing for 3 months from now, but optimizing for 3 years from now. Our stock is going to reflect long term performance.”

Image by iQoncept via Shutterstock.

 

 

 

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