A trimmer, sharper Groupon seen in the post-Mason era
San Francisco: Groupon Inc under a new chief executive should look a lot trimmer with a sharply reduced international arm, a more focused business - and minus its large and once internally celebrated editorial staff, analysts and investors say.
The exit of co-founder and CEO Andrew Mason - fired after another disappointing set of quarterly results slashed Groupon's market value by a quarter - may usher in a new, more "serious" era marked more by careful, painful decisions rather than reckless geographical and market expansion.
Consumer and merchant demand is sliding for Groupon's daily deals - online vouchers offering discounts on local goods and services. And a slew of new businesses Mason acquired or expanded into are either lower margin or have yet to gain traction.
"It's time to change Groupon from a start-up into a mature corporation," said Jason Jones of HighStep Capital, a technology investment firm that does not own Groupon shares. "They will probably go outside and find a CEO who has run a major multi-national brand before. They need to tame the beast."