Struggling online deals pioneer Groupon said Thursday it ousted CEO Andrew Mason and will look for a new chief.
Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis were appointed to the Office of the Chief Executive while a replacement is found.
Thursday's announcement after the stock market closed came as little surprise. The move had been expected for months.
The announcement came one day after online deals company Groupon Inc. reported a bigger-than-expected loss and gave a weak revenue outlook for the current quarter. The guidance had fueled investor worry that people are tiring of the myriad of online restaurant, spa and Botox deals that Groupon built its business on, and that the company's efforts to broaden into an e-commerce powerhouse haven't been paying off.
Groupon Inc., which went public in November 2011, makes money by taking a cut from the online deals it offers on a variety of goods and services. Investors have questioned whether that business model is sustainable and leads to growth over the long term — and whether the company can not only grow its customer base but make more from each subscriber.
Groupon's stock plunged 24 percent to end regular trading Thursday at $4.53, but was up 2.7 percent in after-hours trading.
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