Groupon founder Andrew Mason is attempting to quell shareholder anxieties about current Groupon troubles by asking for patience. Financial woes have been plaguing the recently-public company, and Mason is hoping to hold it together until a solution is found. Groupon is a “Deal of the Day” website that partners with businesses to offer its subscribers bargains on products and services. The concept took strong hold in the USA and has spread internationally to over 150 markets. Mason spoke to shareholders on Monday and addressed concerns:
[quote]Groupon has more than 11,000 employees just three-and-a-half years after its founding. “Why move so fast? We believe that Groupon is standing before an enormous opportunity, one that hundreds of competitors large and small have seen,” he wrote. “Although there are risks in moving too fast, companies often don’t survive long enough to apologize for moving too slow.”[/quote]
Its first earnings report as a public company showed a loss of $9.8 million, and the stock is currently trading at roughly half of where it was at the IPO. Obviously investors are not super thrilled about this, but Mason defends the company’s trajectory, reminding them that the company’s IPO documents warned the road could be bumpy.
Some analysts and press have slightly less faith in Mason’s call for steadfastness. On Twitter, @RobWoodbridge jokes that Groupon founder asks for patience “As he flees the country.”
Source: Ottawa Business Journal