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Andrew Mason's statement about being fired as Groupon CEO

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Re: Andrew Mason's statement about being fired as Groupon CEO

#111

Post by cgusto »

sethbannon wrote: post #4

Full text of his statement: (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…

+1 for the Battletoads reference. I probably broke a couple NES controllers out of frustration back in the day.

As morbid as it sounds, it is refreshing to see such a painfully honest email. I wish Groupon and Andy the best.

Re: Andrew Mason's statement about being fired as Groupon CEO

#112

Post by mattmaroon »

millerc wrote: post #78

Dear Andrew, One bad year and a couple missed objectives, and your boss fires you? Looks like you were dealing with somebody who doesn't invest in training his employees... you'll be much happier working for somebody else. Love, an observer

It's not one bad year. Every year they've had, from a profit perspective, has been a bad year. We just didn't know how unstable the business model was when they were private. By the time merchants had a chance to figure out what selling a Groupon actually gets them (which for most is little more than a huge headache and a loss of money) Groupon was a public company.

Groupon built this massive juggernaut on a shaky premise, which is that merchants can sell a Groupon and more than recoup the lost revenues in future business. It's debatable whether merchants will keep selling these at 25% when most lose money on it and seem to get no long term benefit. It actually seems unlikely.

Groupon also spent more to acquire users than they made off them, figuring they'd make it up later, much like they were telling merchants. That's why they included the ridiculous ACSOI metric in their prospectus.

It's likely at this point that they need to pivot, and they probably just don't think Mason is the guy to do it. Maybe they think he should have done it sooner.

The nice thing about Groupon is they're in a great position to do it. The bad thing is it's going to be tough, and what they pivot too is uncertain.

Re: Andrew Mason's statement about being fired as Groupon CEO

#113

Post by moe »

hyperbovine wrote: post #51
downandout wrote: post #40

Earlier quoted context omitted.

Very classy. Keep in mind, though, that it makes is somewhat easier to take being fired in stride when you have a $200 million cushion. He doesn't have to deal with many of the challenges that most newly-fired people do - like finding a job in the not-too-distant future, etc. To be sure, getting kicked out of the company you founded is an emotionally challenging experience, but he can lick his wounds on board a priva…

Getting fired from something you poured your heart and soul into for close to five years, sacrificed relationships, health (+40 lbs), etc., must feel awful. I suspect he really does feel love for many of the people who were in the trenches with him during this time, as he avers in the closing line. Staring at your bulging bank account can only do so much to lessen that pain, at least in the short term.

Oh the tears of sorrow the poor guy will shed into his heated swimming pool after being ejected from such a respectable business, with 200 million to his name...

I don't think I have been this touched ever since Lassie died.

Re: Andrew Mason's statement about being fired as Groupon CEO

#114

Post by 001sky »

downandout wrote: post #40
sethbannon wrote: post #4

Full text of his statement: (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…

Very classy. Keep in mind, though, that it makes is somewhat easier to take being fired in stride when you have a $200 million cushion. He doesn't have to deal with many of the challenges that most newly-fired people do - like finding a job in the not-too-distant future, etc. To be sure, getting kicked out of the company you founded is an emotionally challenging experience, but he can lick his wounds on board a priva…

Very classy. Keep in mind, though, that it makes is somewhat easier to take being fired in stride when you have a $200 million cushion.

== Wait what? If you have to say it, it probably aint.

Re: Andrew Mason's statement about being fired as Groupon CEO

#115

Post by edouard1234567 »

jedc wrote: post #33
kurtvarner wrote: post #22

Earlier quoted context omitted.

He's being replaced by Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonisis. They will serve as co-CEOs until they find a permanent replacement. Here is Lefkofsky's statment: 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…

And if I remember correctly, Eric Lefkofsky was one of the investors who cashed out ~$1billion (!) of his Groupon shares during one of their last VC rounds. I'm surprised they were able to do that, but so many people were killing themselves to be a part of the deal that Eric was able to push this slimy deal through. How any rational VC allows early investors to do that is beyond me... Nothing against the guy (I have…

Taking cash off the table is not seen as a negative signal if done systematically.

Re: Andrew Mason's statement about being fired as Groupon CEO

#116

Post by shocks »

moe wrote: post #113
hyperbovine wrote: post #51

Earlier quoted context omitted.

Getting fired from something you poured your heart and soul into for close to five years, sacrificed relationships, health (+40 lbs), etc., must feel awful. I suspect he really does feel love for many of the people who were in the trenches with him during this time, as he avers in the closing line. Staring at your bulging bank account can only do so much to lessen that pain, at least in the short term.

Oh the tears of sorrow the poor guy will shed into his heated swimming pool after being ejected from such a respectable business , with 200 million to his name... I don't think I have been this touched ever since Lassie died.

Lassie died?!

Re: Andrew Mason's statement about being fired as Groupon CEO

#117

Post by rayiner »

mattmaroon wrote: post #109
rayiner wrote: post #8

As a fellow Northwestern grad it disappointing to see him go, but as a lover of Chicago its probably for the best. I'd really love to see GroupOn succeed and help anchor a diversified tech presence in the city. We have some great startups, but you need big public companies in the same way a mall needs a Macys, Nordstrom, etc.

Why do I routinely see people on the net capitalize the second o? (You're not the first I've seen even today.) Is it like Microsoft, where it used to actually be MicroSoft and people like Mark Cuban still spell it that way out of hipsterish I-was-there-in-the-old-days sentiment? Or do a lot of people just think thats how it's supposed to be?

I think it's just because the pun "Groupon = coupon" is too subtle to be intuitive to me. I think of it as "group on [to]" which I realize makes no sense.

Re: Andrew Mason's statement about being fired as Groupon CEO

#119

Post by nilkn »

larrys wrote: post #41
tptacek wrote: post #24

Earlier quoted context omitted.

Same. Wow. That guy sounds like someone I'd want to work with in the future.

Agree that the letter is good. But I'm puzzled by your reaction to it. Seems more of a populist "touchy feely aw shucks nice guy". How does that make you want to work for him? He wrote a good letter. What about the things he sucked at? What about the immaturity? The bad business decision. So what he is humble. Some of the business people who are viewed as the most heartless and absolute assholes (by outsiders) can be…

> So what he is humble.

A willingness to admit your mistakes is more than humility, though. It's the first step towards not making those mistakes a second time.

Re: Andrew Mason's statement about being fired as Groupon CEO

#120

Post by millerc »

mattmaroon wrote: post #112
millerc wrote: post #78

Dear Andrew, One bad year and a couple missed objectives, and your boss fires you? Looks like you were dealing with somebody who doesn't invest in training his employees... you'll be much happier working for somebody else. Love, an observer

It's not one bad year. Every year they've had, from a profit perspective, has been a bad year. We just didn't know how unstable the business model was when they were private. By the time merchants had a chance to figure out what selling a Groupon actually gets them (which for most is little more than a huge headache and a loss of money) Groupon was a public company. Groupon built this massive juggernaut on a shaky pr…

Interesting argument. Seeing as Mason created from scratch a company valued at around $20B using Lefkofsky's seed investment of $1M, it seems to me like a very respectable accomplishment.

Whether the current business model is viable and how much they need to pivot if they do, that's hard to tell without walking a mile in their shoes. But if I only had to bet on one horse, I'd pick the one that has a proven record for a "very respectable accomplishment" and give him the tools he need to succeed.

If Lefkofsky thought the business was so bad, would he have taken the reigns himself?

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