Groupon pins turnaround on billionaire Lefkofsky

Groupon’s choice of Eric Lefkofsky as permanent CEO entrusts the daily deals site’s turnaround plans to a controversial Chicago billionaire with a history of failed endeavours.

Bloomberg News reports that Lefkofsky - one constant at a company that has cycled through executives and dabbled in new business models to make up for waning demand in its main coupon business - has shored up control after jostling with his co-founder Andrew Mason, whom he helped oust from the CEO role in February.

While the move puts Groupon in the hands of a known quantity, who as interim co-CEO helped oversee a 79% stock rally this year, it also dashed optimism that the board would tap an outsider with experience leading corporate overhauls. In May, the company said the search for a new chief was under way and it was talking with recruiting firms.

Lefkofsky, 43, owns 17% of the company’s common stock and controls 26% of shareholder votes, and his influence over the board may have hindered Groupon’s ability to attract qualified candidates, said Adam Charlson, executive vice president of recruiting firm DHR International Inc.

Third-quarter revenue is forecast to rise to $585m to $635m, Groupon said. That compares with an average analyst estimate of $621.5m, according to data compiled by Bloomberg.

Hit the link below to access the complete Bloomberg article:

Groupon Pins Turnaround on Billionaire Investor Lefkofsky

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