He sold his shares and has been using Groupon as his private piggybank.
Now he will have more time to make new yoga videos and drink beer!
Bingo - You got that right - he sold all his Groupon shares last year!
Taken form businessinsider:
"Is Groupon being "dumb like a fox?" That's the conspiracy theory.
Groupon has a continuing history of stupid accounting mistakes.
First, while it was still a private company, it went around telling the public it was profitable – even though it is still not.
Then, in its first public financial disclosure, it described marketing expenses as a capital investment.
Next, it called gross revenues net revenues.
Finally, this past quarter, Groupon underestimated how many refunds customers were asking for, and ended up having to revise its quarterly earnings, sending the stock plummeting 16% or so.
Thanks to all these screw-ups, which we've always attributed to a certain numbskulled aggression, there is a conspiracy theory brewing about Groupon among some of its scorned public investors.
We don't have any evidence at all that this conspiracy theory is legitimate – believe us, we'd be screaming about it if we did – but it's kind of fun in the way all cloak-and-dagger stories are.
Basically, it goes like this:
[To reiterate, these are not our views. We are not validating them; we are just just relaying them.]
Groupon's chairman, Eric Lefkofsky has a history of financial scandal.
One time he sold a startup called Starbelly to a bricks-and-mortar company that later went bankrupt.
In a lawsuit that followed, an email from Lefkofsky surfaced. In it he wrote: "Lets start having fun... lets get funky... let's announce everything... let's be WILDLY positive in our forecasts... lets take this thing to the extreme... if we get wacked [sic] on the ride down-who gives a #$%$... THE TIME TO GET RADICAL IS NOW... WE HAVE NOTHING TO LOSE..."
Years later, Lefkofsky hired a contract worker named Andrew Mason.
In Mason, he discovered a naive genius and gave him the money start what everyone thought would be a legitimate business."
But then Mason stumbled into a business with an explosively growing top-line (not bottom line or even middle line), and
Maybe the man-child will be able to reclaim his waiter job at the sushi joint!?
Groupon is finito!
They are just doing damage control to help the PPS from tailspinning in to the ground.
“Not what it once was”
Former Sales in Chicago, IL – Reviewed Feb 13, 2013
Pros – -Staff in Chicago, sales and otherwise, are likeminded, young and hungry for the most part
-Niche opportunities to make some serious money with hard work
Cons – -Management turnover/objectives changing monthly
-Trial and error with sales comp plan; no consistency
-The employees who were champions of the product have largely been forced out
-Direct from COO- "We're here to appease stockholders, then merchants, then customers, then employees.
Before they went public, this was hands down THE place to work in Chicago. Now it's a grind to move the stock price up pennies at a time, with no consideration for the long-term effects.
Advice to Senior Management – COO Kal Raman came in promising more resources for the sales staff, but after 2-3 months, it was evident that he was spitting lies.
How's it going, Kal? Answer: The tail is still wagging the dog.
Former employee - worked at Groupon full time for more than 3 years
Current Outside Sales Account Executive – Reviewed Feb 14, 2013
Pros – The training is excellent an the pay CAN be great, that is if they get it right. Outside reps have a lot of freedom but are watched closely interns of activity. You get a company iPhone, MacBook Pro, and expense/mileage reimbursement. You also get a staples account you can order office supplies from but the list of what you can order is VERY LIMITED.
Cons – They've changed the commission structure 3 times in 6 months. Commission statements are wrong and have to be corrected more on often then not. You are very alone on the outside and it is hard to get the attention you need. You work all the time with little work life balance. There is no vacation policy which they present as a positive thing eluding to unlimited vacation days, but really it seems to be a big hassle asking for even a day off now and then.
Advice to Senior Management – Get a grip and start answering questions. You say that transparency is a priority, so be transparent please!
“This place is a circus!”
Former Account Manager in Chicago, IL – Reviewed Feb 20, 2013 – New
Pros – * You can wear whatever you want... sweatpants? Sure!
* Come and go as you please
* Free coffee, tea, and soda
Cons – * Unorganized & too chaotic. Get ready to have 5 different managers in a year!
* Very poor management structure. They have no idea how to lead/motivate a team. They also play favorites.
* Awful communication structure. New processes? You will know about it 2 weeks later.
* The HR Dept. is a joke. They are very unprofessional.
* Negative atmosphere.
* Extremely high turnaround.
* Very long work hours. Be prepared to be in the office 10+ hours every day.
Advice to Senior Management – Learn to respect your reports and your peers.
People of Groupon,
After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today. If you’re wondering why… you haven’t been paying attention. 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.
You are doing amazing things at Groupon, and you deserve the outside world to give you a second chance. I’m getting in the way of that. A fresh CEO earns you that chance. The board is aligned behind the strategy we’ve shared over the last few months, and I’ve never seen you working together more effectively as a global company – it’s time to give Groupon a relief valve from the public noise.
For those who are concerned about me, please don’t be – 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. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through. I am so lucky to have had the opportunity to take the company this far with all of you. I’ll now take some time to decompress (FYI I’m looking for a good fat camp to lose my Groupon 40, if anyone has a suggestion), and then maybe I’ll figure out how to channel this experience into something productive.
Groupon fires chief after dismal results
28 Feb 2013
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25 Feb 2013
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25 Feb 2013
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25 Feb 2013
Apple faces $100m bill after children buy apps
26 Feb 2013
If there’s one piece of wisdom that this simple pilgrim would like to impart upon you: have the courage to start with the customer. My biggest regrets are the moments that I let a lack of data override my intuition on what’s best for our customers. This leadership change gives you some breathing room to break bad habits and deliver sustainable customer happiness – don’t waste the opportunity!
I will miss you terribly.
Citation from Masons interview on November 28th.
What is up with the board - have they gone completely insane from pure desperation?
Mason is the backbone of this company!
They can´t fire him, he quit! Do they think that they can replace him with some other guy? Go ahead, it won´t be the same! They may think that he is losing, but he is not!