Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Groupon Inc (GRPN) Doesn’t Need a New CEO

This didn’t seem like such a bad move when Groupon went public as a $12 billion company, but now it seems critical with Groupon’s market cap below $4 billion.

Let’s back things up a bit. Groupon was able to go public at more than double Google’s offer a few months later. It’s easy to play revisionist history now, but cashing out would’ve meant leaving money on the table at the time.

And let’s get back to that Google offer. Many sources claim that the ultimate deal breaker for the deal maker was that Google didn’t want to pay more than $800 million as a breakup fee if regulators blocked the deal.

Google didn’t want to pony up more bail money because it had to know that there was a pretty good chance that antitrust regulators would drag their feet. The world’s leading online advertising company buying the world’s leading daily deals provider?

The Justice Department took nearly a year to approve past purchases including DoubleClick, Motorola Mobility, and ITA Software. This deal would’ve take even longer, and under the likely scenario that it would’ve been denied, the daily deals niche would have already been exposed as limited. Groupon wouldn’t be able to go public, and it certainly wouldn’t have been worth $6 billion.

Mason certainly doesn’t deserve CEO of the Year accolades, but he’s not the reason that Groupon is unloved these days.

A new CEO won’t fix the problem. It anything, a new leader with fresh vision could do more harm than good.

It’s the daily deals model that’s flawed, and if you think otherwise feel free to use the comments section below to explain how you would fix Groupon if you were in charge. They are looking for an external hire, you know.

Today’s Groupon shareholders may have shot the messenger, but they’re still left holding the message.

The article Groupon Doesn’t Need a New CEO originally appeared on Fool.com.

Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Google. The Motley Fool owns shares of Amazon.com and Google.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.