Groupon’s board of directors is looking outside its current management for candidates that could assume the now vacant position of CEO, according to a Bloomberg report that cites anonymous sources familiar with the situation.
Last week, long-time Groupon CEO and founder Andrew Mason was terminated from his post after the company lost a fifth of its value and for its consistently disappointing quarterly earnings. The move was hardly a surprise, with several critics on Wall Street clamoring for Mason’s departure November. And until Groupon finds a replacement, executive chairman Eric Lefkofsky and vice chairman Ted Leonsis have been appointed as temporary leaders.
The company’s dismal financial results come just as consumer demand for online-coupon services like Groupon have drastically cooled down compared to a year ago. However, it seems that the board is still confident in the group-deal business model, just not its execution thus far.
According to Bloomberg’s sources, the board’s decision to look for an external leader means Groupon Chief Operating Officer Kal Raman isn’t being considered for the position. Also, Lefkofsky, Leonsis, and other board members are also out of the running, according to Groupon.
Whomever the board does determine as a credible candidate to take over, they will likely have a hell of a time turning Groupon’s dismal business around.
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