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Groupon entrusts turnaround on billionaire venture capitalist Lefkofsky

August 8
9:54 AM 2013

Groupon Inc.'s choice of Eric Lefkofsky as the company's permanent chief executive officer would ensure that the turnaround plans of the daily deals website would get past the history of unsuccessful endeavors.

The newly appointed chairman, Ted Leonsis, said Groupon's real choice is Lefkofsky since he could provide the continuity that the company needs as it reshapes itself. Lefkofsky, 43, currently owns 17% of Groupon's common stock and controls 26% of the shareholder votes.

"We have too much to do to take a transition right now," Leonsis stated through an e-mail. "The next few years are critical, and we're confident that Eric is the right leader for this stage of Groupon's evolution."

The second-quarter earnings report provided by Groupon showed that nearly 50% of transactions in June made in North America came from mobile phones. The figure was up by one third from the deals recorded in 2012. Internationally, over 50 million people downloaded Groupon's apps.

Furthermore, Groupon forecasted an increase in its third quarter revenue from US$585 million to US$635 million. The average analyst estimate for Groupon's earnings is only US$621.5 million.

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