Groupon Founder Andrew Mason Out as CEO The embattled founder's memo to staff details why he was dismissed.

By Jason Fell

iHub

Andrew Mason, co-founder of Chicago-based daily deals website Groupon, has been replaced as CEO, the company announced today. Executive chairman and co-founder Eric Lefkofsky and vice chairman Ted Leonsis will take the helm while the company searches for a full-time replacement.

In a memo, Mason said he was dismissed for several reasons: "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 added, "I love Groupon, and I'm terribly proud of what we've created. I'm OK with having failed at this part of the journey."

A Groupon spokesperson declined to comment but verified Mason's memo.

Related: Overcoming the Groupon Effect: How to Sell Merchants on Your Start-Up Deal Site

Mason most recently came under fire following Groupon's worse-than-expected fourth quarter earnings report this week. The company posted a loss of $81.1 million and indicated revenue growth was to slow down in the first quarter of this year.

Indeed, Mason had been in the hot seat for some time, as reports surfaced last year that the company was unsatisfied with his leadership and had already started looking for a replacement.

Founded in 2008, Groupon effectively pioneered the popularity of daily-deal sites. The company went public in 2011 with early estimates pegging its value at about $11 billion. But Groupon quickly fell out of favor with customers as well as some merchants, with business owners complaining that the deals are difficult to manage and often don't drive additional profits.

"As a founder, Andrew helped invent the daily deals space, leading Groupon to become one of the fastest-growing companies in history," Lefkofsky said of Mason in the announcement.

Related: 5 Influential CEOs Weigh in What Makes a Good Leader
Jason Fell

Entrepreneur Staff

VP, Native Content

Jason Fell is the VP of Native Content, managing the Entrepreneur Partner Studio, which creates dynamic and compelling content for our partners. He previously served as Entrepreneur.com's managing editor and as the technology editor prior to that.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Most Popular

See all
Side Hustle

After an Eye-Opening Trip to Home Depot, This Grandfather Started a Side Hustle on Amazon — and Did About $500,000 in Sales Last Year

Joshua White was shopping with his daughter when he recognized a real problem he wanted to solve.

By Amanda Breen
Business News

'Challenges Are Opportunities': Reebok's 89-Year-Old Founder Is Launching the World's First Futuristic AI Shoe

Joe Foster co-founded Reebok in 1958. Now, he's partnering with a 25-year-old entrepreneur to debut what they say is the first commercial shoe made with AI.

By Sherin Shibu
Business News

Apple Settles Lawsuit Accusing Siri of Eavesdropping. Here's Who Can Expect Part of the $95 Million Payout.

Any Siri-enabled device used within the past decade is eligible.

By Sherin Shibu
Leadership

How to Evolve From Manager to Mentor and Create a Lasting Impact in Your Organization

Are you stuck managing tasks instead of inspiring your team? Leadership is more than execution — it's about leaving a legacy. Here's how to transition from a manager to a mentor who makes a lasting impression.

By Michel Koopman
Business News

Is an Ultra-Thin iPhone 17 'Air' on the Way? New Rumors Float About a Potential Fall Release.

Apple's next few drops could bring some surprises.

By Erin Davis
Growing a Business

5 Ways to Get Through an Extremely Busy Time at Work

To manage the highs and lows during busy moments of your small business, consider these five tips.

By Michelle Van Slyke