Article from NYTimes.
With Andrew Mason’s forced resignation from Groupon on Thursday, the career of one of the most unusual corporate chieftains has ended.
And what an eclectic journey it has been for the onetime darling of Silicon Valley, which ascended with blinding speed, then crashed just as quickly.
Though Mr. Mason’s departure from the four-year-old company he founded had been speculated about for some time — certainly in light of Groupon’s poor financial performance since its initial public offering — the exit was finalized only on Thursday morning, according to people briefed on the matter.
It was little surprise, coming after yet another disappointing quarter, in which the company missed analyst estimates and posted revenue guidance that also fell short of expectations. The company’s stock slid 24.3 percent on Thursday, to $4.53.
That valued Groupon at just $3 billion — after the company went public in late 2011 at a $12.7 billion valuation.
After meeting Thursday morning, Groupon’s board requested that Mr. Mason resign. He agreed.
Mr. Mason will be replaced on an interim basis by an “office of the chief executive” formed Thursday morning, made up of Eric Lefkofsky, Groupon’s chairman and co-founder, and Ted Leonsis, the board’s vice chairman.
Mr. Mason will still have some presence at the company: He currently owns about 7 percent of Groupon’s stock, and controls a much larger percentage of its voting power.
Mr. Lefkofsky bid Mr. Mason farewell in a fairly standard corporate statement: “On behalf of the entire Groupon board, I want to thank Andrew for his leadership, his creativity and his deep loyalty to Groupon. As a founder, Andrew helped invent the daily deals space, leading Groupon to become one of the fastest growing companies in history.”
In typical fashion, Mr. Mason described the circumstances a bit more trenchantly. Here’s an excerpt from a letter he sent to company employees on Thursday, which he posted online “since it will leak anyway”:
After four and a half intense and wonderful years as C.E.O. of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today.
He also references “Battletoads,” a cult video game for the Nintendo Entertainment System that a small minority of DealBook remembers as being sometimes absurdly difficult.
A Pittsburgh native who graduated from Northwestern University with a degree in music, Mr. Mason rarely ever seemed like the corporate type. He originally created Groupon as part of a bigger Web venture, focusing on daily deals as the most commercially viable part of that start-up.
Even then, he was known for his quirky humor. Three years ago, Mr. Mason made a video for a fictional “Monkey for a Week” lending service.
As Groupon grew, Mr. Mason’s peculiar demeanor sense of humor continued to garner attention. His grooming came up at least once, as Silicon Valley denizens pondered whether he’d hit a tanning salon before appearing at a TechCrunch conference in 2010 with a prominent bronze glow.
And in 2011, Mr. Mason had an unusual way of not responding to a question by All Things D’s Kara Swisher that he didn’t want to answer: with a “death stare.”
Groupon’s I.P.O. roadshow video presentation.By that fall, as the daily deals giant was preparing to go public, Mr. Mason took on a more professional cast. In a video to prospective investors, the Groupon chief executive looked a bit more professional, complete with slicked-back hair and a dark suit and tie.
It was a persona he settled into post-I.P.O., usually delivering sober financial information in his public appearances.
But other parts of the run-up to Groupon’s I.P.O. in late 2011 were hardly laughing matters. The company took fire for introducing controversial accounting measures in its prospectus, which critics contended masked losses and unfairly diminished a need to spend heavily on marketing.
The Securities and Exchange Commission queried the company over its financial information in a series of letters that were eventually made public.
In August of 2011, Groupon announced that it was dropping the metric.
Two months later, the company revised its prospectus again to further clarify additional financial reporting measures, as well as to include an internal e-mail from Mr. Mason that was subsequently leaked to the press.
Even after going public, Groupon still ran into the occasional issue. It restated quarterly results last year after disclosing a “material weakness” in its internal accounting controls.
For all those troubles, Mr. Mason accepted responsibility.
“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,” he wrote in his letter…
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