Groupon’s Andrew Mason Fired

Andrew Mason, the irreverent programmer and musician who turned a failed social action site into the daily deals phenomenon Groupon, was dismissed Thursday as chief executive.

A day earlier, Groupon reported weak fourth- quarter earnings, which caused investors to shave off a quarter of the Chicago company’s value. The news about Mr. Mason, released after the market closed, sent shares up more than 4 percent in late trading, according to a story at the NYTimes.com.

In a note to Groupon employees that was typical of his sassy style, Mr. Mason wrote: “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.”

He added, “If you’re wondering why ... you haven’t been paying attention.”

Groupon said in its earnings call that first-quarter revenue would be about 10 percent lower than analysts were expecting, among other disappointments.

Jordan Rohan, an analyst with Stifel, Nicolaus, said Mr. Mason’s exit “was long overdue.”

“I view Mason as a visionary idea generator,” Mr. Rohan said. “Few would argue with how impressive the Groupon organization was as it grew. However, at some point it became the overgrown toddler of the Internet — operationally clumsy, not quite ready to make adult decisions.”

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Tom’s Take:  Once must wonder how long JC Penney’s CEO Ron Johnson can last. Penney’s recently issued a disastrous financial report.  The huge losses come after Penney’s tried to market ‘everyday low prices’ and eliminate coupons and sales.  Well, the sales are coming back.  Personally, I’m not a ‘shopper’ but I do know this: people who are shoppers enjoy the ‘hunt’. And Penney's marketing strategy made the chain 'boring'.  JC Penney and radio have at least one thing in common:  Know your audience!