Groupon Inc(NASDAQ:GRPN)’s founder and Chief Executive Andrew Mason got a breather on Thursday as the board decided not to replace him immediately.
The board had met to deliberate on the future of the company, including that of its boss Andrew, who is being held responsible for the woes of the company and not doing enough to stem the fall of its shares.
Some members had planned to voice their frustration with Mason's leadership. The shares of the company fell after it became clear that he would not be replaced.
“The board and the management team are focused on the performance of the company and they are all working together with heads down to achieve Groupon’s objectives,” Paul Taaffe, a spokesman for Groupon, told Bloomberg in an interview.
Groupon, which offers online deals on services such as restaurants, salons and spas, has seen its share price eroding about 80 percent from its debut last year.
Mason, 32-years old college music major, has appeared ineffective in recent months in leading the company he founded out of the morass it has become bogged down in while some company executive feel he is actually hindering its growth.
Entrepreneurs with a genius of an idea are often found not to have the business acumen to lead it when it starts to grow and starts interacting with a harsher ecosystem outside.
Groupon has been hit by the global economic slowdown, particularly the debt crisis in the Eurozone, where it has been suffering losses.
Groupon shares fell 8.2 percent to $4.17 at 9:44 a.m. in New York.