We have written about the spectacular failure that Groupon has been since before their IPO. Between June and August of 2011, their traffic dropped 50%; not exactly the press you need before you announce your IPO in October. Their attempt to get a good valuation and some investment money didn't quite pan out. Add to that unsuccessful product launches and you end up with a company in trouble.
Their disaster has been so legendary that all recent IPOs have been scored in relation to theirs: Facebook was compared to determine which was worse, and LinkedIn proved an IPO could be successful. But what of the leaders of companies who lose their shirts in the stock market? Often times they are taken out and fired. Groupon has decided to follow in BlackBerry's footsteps, letting Andrew Mason, their CEO, go.
Andrew didn't respond the way most CEOs do when terminated - he released a public statement, and it is a unique one. He knew what was coming and does not blame the company. We have the statement after the break.
(This is for Groupon employees, but I'm posting it publicly since it will leak anyway)
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.
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.