Groupon News Update: New CEO Named

Groupon Get New CEO

Groupon News Update: Five months after daily-deal company Groupon’s founder Andrew Mason was removed from his CEO position, a replacement has been agreed.

Eric Lefkofsky will replace Andrew Mason as chief executive of Groupon, the internet based daily deals company that has been led by Lefkofsky as co-chief executive for the past five months since Mason’s unceremonious dismissal.

In conjunction with the better-than-expected revenue reports for the second quarter, the news of the new management and the stability that supposedly comes with the new role, has caused the stock of Groupon to surge by just short of 20%.

Lefkofsky was an original investor in the company and in February of this year he took on shared leadership of the company with one of the board members; Ted Leonsis. The latter has since been named Chairman of the board. The $300 million share repurchase that’s set to be launched and carried out over two years will assist with the stability too in terms of stock value.

Despite the success of the company, Mason had to be removed from his lofty position within the company after four years due to numerous financial problems. These ranged from earnings misses to accounting scandals but for the company to have any longevity, incidents such as these cannot be accepted.

Groupon News Update

In the second quarter, Groupon were listed as having a net loss of $7.6m while they reported strength in the North American markets with growth of 45% but international business has continued to dwindle. They remained profitable in its debutant years in Europe, the Middle East and Africa but they suffered a drop in sales.

The total growth in revenue managed to eek just ahead of the predicted $606million and finished at $608.7 million, but the core business over the course of one year dipped by $84million to $419million. The launch of the new dimension, Groupon Goods, that offers customers the chance to purchase goods such as televisions and other electrical items, reported a 68% increase in sales but due to the smaller margins, the takings are less significant.

The chief financial officer for Groupon, Jason Child, said he remained confident that that sector of the company would turn of the same profit margins as it continued to grow.

For more information on Groupon and the deals and offers available to their customers, contact their customer services department or visit the news pages on Customer Services Contact and read all of the latest developments with the company

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