LivingSocial CEO says buh bye
The co-founder of the discount deals site announces he's stepping down as the company struggles to figure out its next steps.
LivingSocial CEO and co-founder Tim O'Shaughnessy announced Friday that he's leaving the discount deals company.
The company's board started the search for a new CEO immediately with hopes of finding someone within the next six months, according to a memo sent to staff that was also posted on the company's blog. O'Shaughnessy will remain as CEO throughout the process.
The news was first reported by the Washington Business Journal, citing an internal memo sent to staff.
SocialLiving, like its competitor Groupon, has faced uncertainty in the recent years asit tries to branch out to other ways of making money. The company received an infusion of cash early last year, when its current investors poured another $110 millioninto the company for its new endeavors. Amazon, which owns 31 percent of the company's stock, reported in a quarterly earnings report that LivingSocial had a net loss of $107 million at the end of September.
O'Shaughnessy wrote in the memo that the company is financially stable, but it seems, LivingSocial's leadership is still unclear on its next steps.
"We now have the most stable and healthy business that we have ever had, and the luxury of having hundreds of millions of dollars in the bank to take us to the next level. As the steward of this organization, one of the hardest decisions I need to make is about who is best suited to lead LS into its next stage of growth...And I remain 100 percent convinced the ingredients for success are here," he wrote. "Additionally, I've given much thought to the many opportunities that stand in front of us and the benefits that could come from a new perspective and a new voice and approach at the top to lead us there. My responsibility is to recognize that now is the best time to transition leadership - when that full set of ingredients is available to be used most effectively to shape the company's future."