Groupon decides to keep Andrew Mason as CEO
Company's board of directors had reportedly been discussing whether a change in leadership was necessary at the struggling daily deals company.
Groupon said today it has no plans to replace CEO Andrew Mason after its board met to discuss whether senior management changes were necessary at the struggling daily deals company.
Unhappy with the Chicago-based company's plummeting stock value, Groupon's board of directors were reportedly looking to make leadership changes at the top, including the option of bringing in a more experienced CEO to replace Mason, one of the company's co-founders. After the meeting concluded, the company announced that Mason would remain as CEO.
"The board and the management team are focused on the performance of the company and they are all working together with heads down to achieve Groupon's objectives," the company said in a statement.
Shares of Groupon fell nearly 4 percent in after-hours trading on the announcement, finishing at $4.37 and down from their 52-week high of $25.84.
Recognizing that the company is in trouble, Mason confirmed earlier this week that the board was discussing leadership changes.
"News flash: Our stock is down about 80 percent since the IPO...It would be weird if the board wasn't discussing if I were the right guy for the job," said in a conversation with Henry Blodget at the Business Insider Ignition conference. "It would be more noteworthy if the board wasn't discussing whether I was the right guy for the job."
Once the fastest-growing company in history, the company has been plagued since February by a slumping stock price, a shareholder lawsuit, and rumored unrest from employees trying to leave the company.
Earlier this month, the daily-deals company reported revenue of $568.6 million for its third quarter, up from $430 million the same time last year. The company also narrowed its net loss dramatically, to just under $3 million from $54 million a year earlier and it broke even on a per share basis. However, that was not enough to satisfy Wall Street, which had been expecting $590 million in revenue.