The board of directors of daily online deals site Groupon Inc (NASDAQ:GRPN) is expected to meet later on Wednesday and discuss the issue of appointing a new Chief Executive, as frustration mounts over the performance of incumbent and co-founder Andrew Mason.
Groupon, which was hailed as the poster-boy for the second coming of Internet companies, has fallen into tough times as revenues sag and its stock price has taken a beating in the stock exchange.
The shares have dropped 80 percent since Groupon’s November 2011 initial public offering, as demand for online coupons has cooled. Mason has struggled to shore up the core business or push the company into new areas that will generate new sources of revenue.
The company’s woes are being laid directly at the door of Mason, who has not done anything so far to arrest the decline. One of the main reasons for the poor performance of the company has been the economic decline in Europe.
In November the company reported losses for its third quarter that was much lower than what it reported a year earlier while revenues showed a stronger growth.
But investors have failed to be impressed with its results.
Technology blog AllThingsD has originally reported about the meeting. Shares of Groupon rose as much as 4.8 percent to $4.15 in late trading on the news. They closed on Tuesday at $3.96 in New York.
The company makes money by selling discounts -- known as Groupons -- from businesses such as restaurants and nail salons. It then splits the revenue with the businesses. It has also sought to diversify its income by introducing Groupon Goods, an e-commerce site for marked-down products.