All Articles Tagged "ipo"
Groupon Fires Its CEO, Stock Price Goes Up
The former CEO of Groupon, Andrew Mason. Photo: Christoph Soeder/dapd
Groupon has announced that fired its CEO, Andrew Mason, a day after reporting fourth quarter results that sent the stock down 25 percent.
The 32-year-old Mason followed up his dismissal with a public message announcing he’d been canned.
After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today. If you’re wondering why… you haven’t been paying attention. From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that’s hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable.
Wow. He went on to say that a new leader will give the company a chance at achieving what it should. The full letter is available on Mashable.
In response to his firing, the company’s stock price went up four percent after hours. According to The Wall Street Journal, the board made their feelings known on Wednesday, requesting that Mason be relieved of his duties. Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis will serve as interim CEOs. The stock price went as low at $4.53 before the announcement. It has been as high as $20.
Aside from anything that Mason did, the company fell victim to a wave of tech start-up IPOs that didn’t live up to the hype. “On Wednesday, Groupon said its net loss widened to $81.1 million as it recorded shrinking margins, declining cash flow and projected weaker-than-expected sales for the current quarter,” the Journal reports. The New York Times says that when Groupon went public, it was valued at $16.5 billion and was getting offers from Google. Today, it’s worth $2.97 billion. Ouch.
Still, the company has 10,000 workers across 48 countries, the Times says. So there are opportunities for change and growth under new leadership. The key will be hiring the right person. We’ve got tips for that.
Creators of Multicultural Line Of Dolls Take Their Company Public
One World Doll Sophia. via Facebook
One World Holdings, parent company for The One World Doll Project, a company that creates a line of multicultural dolls, has taken the business public, trading under the symbol “OWOO.”
Stacey McBride-Irby
The company is led by CEO Joanne Melton, who worked at JP Morgan Chase between 1998 and 2002, becoming the first black manager of Commercial Loans Services and then the first black senior manager. Stacey McBride-Irby, SVP of product development, is a former project designer at Mattel, responsible for the So In Style line of African-American dolls, sorority Barbie, which celebrated the centennial of Alpha Kappa Alpha, and a black Barbie in the 1980s.
The company website describes the One World Doll Project as such:
THE ONE WORLD DOLL PROJECT promises to make one of the most significant positive cultural impacts on play and in the doll category in recent history. Our beautiful dolls and unique works of art are the beginning of a revolution in play, ready for a market yearning for something unique to its experience – a doll that both embraces contemporary girls of color and symbolizes who they can become.
Will you be buying a One World Doll? Or shares of its stock?
Rumors Swirl As Groupon Puts An Indefinite Hold On IPO Talks
by Cynthia Wright
Even though Groupon was one of the sole pioneers when it came to providing a way for companies to provide discounts over the Internet, even when others jumped on the discount bandwagon – Groupon’s brand seemed to remain intact.
So, it wasn’t that much of a shock in early June when Groupon announced their decision to go forward with a highly anticipated initial public offering (IPO) that would be finalized in late September. Unfortunately, for the discount brand – that wasn’t to be the case. Especially, since the company recently released a statement saying that they were postponing the IPO due to the market downturn and concerns brought forth by the Securities and Exchange Commission.
While some companies such as LinkedIn and Zillow have had shaky IPO starts, others like the music company Pandora have had it relatively easy – leaving some to wonder – is Groupon’s hesitation a sign of a bigger issue?
After all, the company’s missteps have been well known and documented since the awkward-bordering-on-insensitive advertisement that was broadcasted during the Superbowl. Outside of that, the company has also come under fire for its unusual accounting metric, the Adjusted Consolidated Segment Operating Income, which is seen as an unfair to measure their financial worth. Which, the SEC asked them promptly to remove prior to the company submitting their IPO application.
On top of that, the high marketing costs coupled with their unprofitable business model have potential investors raising their eyebrows. Although, some view Groupon’s business model as unreliable – it didn’t help that soon after, a memo penned by CEO Andrew Mason for his employees was “leaked” to the masses, which many saw as a violation of the SEC’s silent period mandate.
Surprisingly, it still wasn’t the first time Groupon had come close to breaking the quiet period rules. Especially, since the day after the company filed for the IPO, Groupon’s chairman and one of its biggest investors, Eric Lefkofsky, told Bloomberg that the daily-deal company was going t be “wildly profitable,” once the company officially went public.
Although, Groupon has yet to come out defending their case and with no apparent signs of road show on the horizon – it is hard to estimate how long it will be before the public hears Groupon’s take on the situation. In the meantime, it hasn’t been determined what effects this will have (if any) on investors when Groupon decides to eventually move forward with its IPO process. Either way, they are slowly emerging as a poster child for burgeoning entrepreneurs by showcasing the best way not to go public.
Cynthia Wright is an avid lover of all things geeky. When she isn’t freelancing, she can be found on her blog BGA Life and on Twitter at @cynisright.
Startups, IPOs, and Exits (or Not)
(Read Write Web) – The electric car startup Tesla Motors made history this morning: the first IPO for an American car company since Ford in the 1950s. Eyes are on the company for a number of reasons: questions about the profitability of the green tech industry, the applicability of the VC investment model to the auto industry, the continuation of the post-Paypal success streak, and the possible reprise of the once-great technology IPO.
Startups, IPOs, and Exits (or Not)
(Read Write Web) – The electric car startup Tesla Motors made history this morning: the first IPO for an American car company since Ford in the 1950s. Eyes are on the company for a number of reasons: questions about the profitability of the green tech industry, the applicability of the VC investment model to the auto industry, the continuation of the post-Paypal success streak, and the possible reprise of the once-great technology IPO.
Nielsen Files For A Possible $1.75 Billion IPO
(PaidContent) — Nielsen, one of the biggest B2B media and measurement companies, has filed for an IPO, and hopes to raise as much as $1.75 billion. J.P. Morgan Securities and Morgan Stanley are the lead underwriters for it, but no word on share price range, how many shares, or what exchange it will be on, though very likely NYSE.
Where Have All the IPOs Gone?
(Smart Money) — It’s getting harder to go public, and the wild market isn’t helping. Recent volatility, turmoil in Europe and funding headwinds have already taken a toll on an initial public offering market that was blossoming just two months ago. In two of the last three weeks, only two IPOs priced. Over the next few weeks, banks expect to price only three new issues per week, according to Morningstar IPO strategist Bill Buhr.
Where Have All the IPOs Gone?
(Smart Money) — It’s getting harder to go public, and the wild market isn’t helping. Recent volatility, turmoil in Europe and funding headwinds have already taken a toll on an initial public offering market that was blossoming just two months ago. In two of the last three weeks, only two IPOs priced. Over the next few weeks, banks expect to price only three new issues per week, according to Morningstar IPO strategist Bill Buhr.
