Admittedly, having expanded aggressiely back in 2011, it’s been a bit quiet on the Groupon front lately. But in pre-market trading today, shares in the Nasdaq-listed company jumped by 25% to $10.90 after it announced the appointment of a new chief executive.
It’s taken its time about the appointment: Andrew Mason, the company’s controversial founder, was fired back in March. He announced his departure with the memorable speech: ‘I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today.’
New boss Eric Lefkofsky isn’t exactly a surprise appointment: he was drafted in as one of the company’s temporary ‘co-chief executives’ after Mason’s departure. He invested in Groupon early on, and is listed among its co-founders. Lefkofsky has more than a passing interest in the company’s success: he is said to have lost more than half his fortune when Groupon’s share price plummeted after its IPO.
The appointment was announced as part of Groupon’s second-quarter results. The company made a net loss of $7.6m in the three months to the end of June, despite a sales growth of 45% in North America. In Europe, the Middle East and Africa, it said it had turned a profit, despite a 3% fall in sales.
MT just wonders what will become of all those unwanted Garra rufa…