Shares jumped 7.1% to $4.86 after-hours after tumbling in regular session trading.
Groupon’s shares drop after earnings results, bringing new pressure to CEO Andrew Mason. Will the board move to drop him? Drew FitzGerald joins digits. Photo: Getty Images.
The company named Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis to the newly created office of the chief executive to serve in this role on an interim basis.
“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,” Mr. Lefkofsky said Thursday.
Groupon lost more than a fifth of its value earlier in the day after reporting another disappointing quarterly loss that renewed questions about the daily-deals site’s aggressive growth strategy and expansion into the direct-sales business.
Losses from the Chicago-based company, which helps to arrange discount offers with local merchants, reached $81.1 million in the fourth quarter, wider than its $65.4 million loss a year earlier. Results were hurt by international challenges and the deteriorating profitability of its businesses, particularly the one that sells merchandise directly to customers, known as Groupon Goods.
Source: Wall Street Journal, OxBridge Research
