Groupon and its Founder Mason Ouster story

Andrew Mason, CEO and founder of Groupon, has just been replaced by Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonisis, who will take over the new position of Office of the Chief Executive.

They will serve as interim co-CEOs while they hunt for a replacement to take over permanently.

Here’s the official Lefkofsky quote from the release:

On behalf of the entire Groupon Board, I want to thank Andrew for his leadership, his creativity and his deep loyalty to Groupon. As a founder, Andrew helped invent the daily deals space, leading Groupon to become one of the fastest growing companies in history. Groupon will continue to invest in growth, and we are confident that with our deep management team and market-leading position, the company is well positioned for the future.

This decision comes fresh on the heels of a rough morning, in which Groupon lost a quarter of its market value after an incredibly underwhelming Q4 earnings report.

But Groupon’s troubles have extended much further back than that, and most of the pressure has fallen on Mason. There was a push in the past few months to replace Mason at the helm, and stock dropped by double digits when Groupon’s board kept Mason around.

However, a Hedge Fund investment saw Groupon’s stock rise 11 percent in November, only to drop again after this morning’s report.

Mason just tweeted the following, which seems to have broken Jottit:

For Groupon Employees: jottit.com/v5wux/ (Apparently, sharing oranges is necessary but insufficient #leadership)

— Andrew Mason (@andrewmason) February 28, 2013

Here’s the entirety of his memo:

People of Groupon,
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.
You are doing amazing things at Groupon, and you deserve the outside world to give you a second chance. I’m getting in the way of that. A fresh CEO earns you that chance. The board is aligned behind the strategy we’ve shared over the last few months, and I’ve never seen you working together more effectively as a global company – it’s time to give Groupon a relief valve from the public noise.
For those who are concerned about me, please don’t be – I love Groupon, and I’m terribly proud of what we’ve created. I’m OK with having failed at this part of the journey. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through. I am so lucky to have had the opportunity to take the company this far with all of you. I’ll now take some time to decompress (FYI I’m looking for a good fat camp to lose my Groupon 40, if anyone has a suggestion), and then maybe I’ll figure out how to channel this experience into something productive.
If there’s one piece of wisdom that this simple pilgrim would like to impart upon you: have the courage to start with the customer. My biggest regrets are the moments that I let a lack of data override my intuition on what’s best for our customers. This leadership change gives you some breathing room to break bad habits and deliver sustainable customer happiness – don’t waste the opportunity!
I will miss you terribly.
Love,
Andrew

Mason has been the founder and CEO of Groupon since its inception in 2008, led it through a $750 million IPO, and struggled to maintain momentum as the daily deals business began to flounder.

Update: The WSJ has secured the internal memo sent out to Groupon employees to alert them of Andrew Mason’s departure as CEO.

Dear Groupon,

After more than five years of super-human service to Groupon, Andrew has been asked to step down.

Andrew’s achievements during his tenure are virtually unmatched in Internet history. Not only did he help invent the daily deals space, but he also created one of the fastest growing companies in history. But for all of us on the Board, maybe his greatest achievement is that in the face of extreme pressure and public scrutiny, he guided the company with grace and never lost sight of the things that matter most: our customers and merchants.

It’s hard to believe that Groupon is only four years old. Our journey began in November of 2008 when we offered our first deal (pizza at 50% off) to a handful of people in Chicago. Today, with over 11,000 employees, we now offer more than 30,000 deals a day to over 200 million subscribers globally. But even more staggering is the fact that our customers purchased more than 50 million Groupons last quarter alone.

Groupon is a very different company today than it was just a few short years ago. From our local daily deal roots, we have spent significant time and resources evolving into new categories including Goods, Getaways, and Live. We have also fundamentally changed the way customers interact with Groupon. We have migrated nearly 40% of users in North America to mobile, while dramatically reducing our reliance on email which now accounts for less than 50% of our transactions. And with Pull, consumers can browse among thousands of deals on our site and buy exactly what they want, when they want it.

In the midst of this evolution in 2012 we delivered 35% growth in billings to $5.4 billion, 45% growth in Revenue to $2.3 billion, 22% growth in active customers to 41 million. Additionally our Operating Profit improved from a loss of $233 million in 2011 to a gain of $99 million last year.

Yet we all know our operational and financial performance has eroded the confidence of many of our supporters, both inside and outside of the company. Now our task at hand is to win back their support.

We also need to stay relentlessly focused on doing what is right for our customers and merchants. We’ve built a curated marketplace that is vibrant and thriving; and if we continue to invest in our future, stay focused on the long term and lead through innovation, we can achieve truly great things together.

As Groupon starts to write its next chapter, Ted and I are both honored to be able to help guide the company until a new CEO is in place. We are fortunate to have a very talented and committed management team to help us execute on our vision.

We appreciate the tireless effort you have poured into getting our company where it is today, and we are even more excited about the future that lies ahead.

Eric Lefkofsky
Executive Chairman & co-founder

Ted Leonsis
Vice Chairman

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Lytro Reinvents The Camera Once Again, Now Lets Photos Change Perspective Along With Focus

Lytro is on a roll. After launching manual controls just last month, the company today release a real treat. The Lytro desktop software just received an update that brings two new features into the mix: perspective shift, which slightly adjusts the perspective of the camera after the picture’s been taken, and living filters. Best of all, these new features work with previously taken Lytro photos.

And just when you had finally wrapped your head around a picture changing focus after it’s been taken…

In case you’re late to the game, Lytro launched a brand new type of camera which captures an entire light field, rather than one plane of light, allowing for interactive images which can change focus with a single click.

This was magical enough in itself, but the company promised that with this disruptive technology would come even more creative benefits: changing focus was just the beginning.

Today, the company delivers on that promise with not one, but two, new features.

The first is shifting perspective, and it’s certainly the most important. One of the main reasons our eyes sense a third dimension besides length and width is the fact that we’re always moving slightly. These slight movements communicate with our brain to mark that the computer is closer than the coffee table is closer than the tv is closer than the wall.

It’s basic stuff, to the point where it’s so obvious you’d never think about it on your own, but Lytro has found a way to integrate it into its software. This means users can not only change focus of the photo, but swivel it around to check out the perspective.

All you do is hold click and move around within the frame. On the iPad, the experience is even better, as Lytro has used the gyrometer to control the perspective shift based on which way you tilt the device. It’s only a slight shift in perspective, the same shifts you make standing, walking, or looking around a room, but it’s a fundamental part of establishing distance and depth.

This is possible on exsiting photos thanks to the sheer amount of data embedded in each photo taken by a Lytro. There’s enough data for the company to keep building features for a long while on the software side, and they prove with this update.

   

The second new feature is called Living Filters, and it’s essentially adding photo filters but on steroids.

For example, Black and White is actually called “Film Noir” and it leaves just the slightest bit of color in a photograph. It’s with this color that you know the girl on the left is a red head and the girl on the right is a brunette.

Other filters like Carnival (think fun house mirror) and Line Art (which is like a cartoon drawing) are more on the fun side, while Crayon (for example) brings a professional grade quality to photos by letting you choose which parts of the photo are in color and which fade to black and white.

What’s important is that no matter the filter, all the images maintain the same interactivity.

  

To meet demand, Lytro amped up distribution in a huge way. The company’s previous backlog of orders has been fulfilled entirely, so if you order a Lytro today on Amazon, it would arrive tomorrow — something the company couldn’t previously state.

The update is available for all Lytro users in the desktop software, but once you’ve enabled the update and opted in to perspective shift for your library (which is undoable), all photos you’ve taken (even existing photos you took months away) will be enabled for perspective shift whether you’re in the software, on the web, or in a Facebook newsfeed.

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Google Has Had Enough: Files Lawsuit To Ban Multiple Apple Products

 

I knew this day would come. I can’t say that I hoped for it, but in all honesty, it was inevitable. Apple has been very busy lately in doing all it can to ban as many Android devices as it can, and HTC, Samsung, and Motorola have all recently got a small taste of the Apple juice lately. But something has changed: Google now owns Motorola, and aren’t wasting any time in defending their new acquisition, as they are now seeking a sales ban on the iPhone, iPad, and Mac computers in the US. This time, it’s personal, and contains a twist that could potentially make this particular lawsuit a very dangerous one for Apple.

This is the first case that Google has signed off on in defending their new hardware company, meaning that there’s no more lurking in the background providing support. This is full on Google with their law team directly involved. This isn't Google watching from the sidelines, but instead, they are calling this one play by play. But Google and Motorola were clever, as this isn't a lawsuit that focuses on silly topics such as icons or square shaped tablets.

Google and Motorola are claiming patent infringement for non-standard essential patents. To put it simply, Google-rola has filed a case for a patent that courts cannot legally force companies to license, meaning that if they win this case, Apple could be forced to completely stop using the technology in their devices.

We don’t have confirmation on exactly which patent (reportedly "wifi related") is in question here, but we do know that Motorola attempted to reach licensing agreements with Apple (since 2010), which Apple apparently refused. Motorola stated that:

“We would like to settle these patent matters, but Apple’s unwillingness to work out a license leaves us little choice but to defend ourselves and our engineers’ innovations”.

(UPDATE: (FOSS Patents is reporting that one of the non standard essential patents in question is for a "sensor controlled user interface for portable communication device", but does not directly specify a wifi related patent. There is still one more non standard essential patent in question, but the specifics of this patent aren't clear at this time. I will contact FOSS Patents and ZDNET (source) for new developments).

This is a big one for Google and for Apple. This isn’t just an OEM that Apple is dealing with now. This is one of the most powerful (if not THE most powerful) movers and shakers in the world. If this comes to trial, Apple could really have its hands full, and might even be forced to rely on Microsoft for backup. **shudders**

The patent wars involving Android and Apple have now reached new heights, and with Google in the center, I have a feeling that things could get very very ugly for the companies that have sought to ban Android products. That being said, you never know how this case could go with the state of the current patent system. 

Additional souces: Bloomberg and Mobilenapps

P.S - I still can't believe this article has gone SO viral. We didn't even break this story, and as you can see, I wrote it over a week ago ! Thank you so much for helping spread it around, and I will do my best to update it with more information as I receive it. If you happen to get your hands on information that's not so public yet, let me know so I can update the article!

Picture credits: Vimeo.com (edited by myself)

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RIM unveils slick Porsche BlackBerry phone. Price tag? Just $1,890.

People having a mid-life crisis have been known to get themselves a Porsche in an attempt to feel more beautiful, youthful and cooler. Now, it’s Research In Motion’s turn.

The latest Porsche to hit the market is a marvel of sleek engineering, filled with gleaming stainless steel and hand-stretched leather. It also fits in your shirt pocket.

That’s because it happens to be not a car, but a BlackBerry. Research In Motion unveiled its latest, slickest-looking smart phone yet this week, the Porsche Design P’9981. The phone was co-designed by RIM and Porsche Design, a subsidiary of the German sports car manufacturer.

It retails for a mere $1,890 in Canada, at the Porsche Design store in Yorkville. In other select markets where it’s been released, it’s already got some celebrity fans — Kanye West has reportedly bought fellow musicians Jay-Z and Beyonce Porsche phones.

For that price, you get not only the gleaming new piece of hardware, but a custom Porsche-designed user interface, a unique PIN that identifies you as a P’9981 owner, a 1.2 gigahertz processor, 8 gigs of memory, and a 5 megapixel camera, and a browser that RIM hopes will speed you down the information autobahn.

It’s a project that RIM leaped at when approached by Porsche Design two years ago, said Todd Wood, RIM’s senior vice president for industrial design.

“When they came knocking, it was such a fantastic opportunity,” said Wood.

For Wood’s inner design geek, it was also a thrill to work with Porsche Design, the company started by Ferdinand Alexander Porsche in 1972. The grandson of the auto maker’s founder was the one who designed the company’s iconic 911 sports car.

“I learned about him in design school, so to go over there and work with that company that he created was great. There were a few times I had to pinch myself,” said Wood.

The new BlackBerry runs on RIM’s BlackBerry 7.1 operating system. It won’t be able to run the long-awaited BB10 operating system when it’s launched, likely this fall, Wood confirmed.

“It won’t be backwards compatible,” Wood said.

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Apple pays $60M for iPad trademark in China

IDG News Service - Apple has agreed to pay $60 million for ownership of the iPad trademark in China, as part of a settlement with a little-known Chinese firm called Proview that had tried to ban sales of the tablet in the country, according to a local court.

The Guangdong Province Higher People's Court announced the settlement on Monday, and stated that the legal dispute had been put to rest. Following the payment to Proview, Chinese authorities transferred the "IPAD" trademark to Apple.

The two companies have been locked in a legal dispute to determine ownership of the iPad trademark, with Apple claiming to have bought the iPad trademarks for China from Proview in 2009.

Proview, a PC and display vendor now facing possible bankruptcy, however, argued that the company had never officially sold the iPad trademarks to Apple. The Chinese company filed complaints and lawsuits, demanding that local authorities stop sales of the iPad in the country because of trademark infringement.

The Guangdong court was originally expected to rule on the case. But Apple and Proview were in recent months in talks to settle the dispute, at the initiative of the court.

Apple did not respond immediately to a request for comment. The company's latest version of the iPad has yet to be sold in the country, despite clearingregulatory checks. Analysts have said the legal dispute over the iPad trademark could be delaying the product's sale.

Proview had wanted as much as $400 million in settlement from Apple in order to help clear its debts. Eight banks have taken over Proview's assets and are owed $180 million.

Li Su, the head of the consultancy representing the eight banks, said Apple initially wanted to pay only a few million dollars for the iPad trademark. But over time, Apple negotiated in good faith, realizing the dispute would linger in Chinese courts unless a settlement was reached, he added.

"Some may feel that Apple had help from Chinese leaders by spending a lot of effort on public relations," he said, noting how Apple's CEO Tim Cook visitedChina in March and met with government officials.

"But I think Apple was acting in good faith," Su added. "Apple only needed to pay a small amount to resolve what could have been a major inconvenience," he said.

Su said he did not know how the $60 million received from Apple would be spent.

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Apple iPhone 5 will put Samsung Galaxy S III to shame: Foxconn CEO

NEW DELHI: The smartphone war between Apple's iPhone and Samsung's Galaxy series is set to heat up further with a top official associated with the company that assembles the iPhone saying that Apple's next offering, iPhone 5, will put Samsung GalaxyS III to shame.

"Consumers should wait for the iPhone 5 because it will put the Samsung Galaxy S III to shame," a report published in Focus Taiwan quoted Foxconn CEO Terry Gou as saying in China Times.

Foxconn assembles iPhone and other Apple products.

According to the report, Gou did not divulge details of the iPhone5 but talked about the new partnership with display manufacturer Sharp during Foxconn's annual shareholder's meeting.

Gou also claimed that Sharp's cutting-edge display manufacturing facilities in Sakai City, Osaka, Japan will give Foxconn a three-year lead on Samsung.

"With (Foxconn's) marketing and manufacturing strengths and Sharp's key technologies, the two will be able to defeat their arch-rival Samsung," the report in Focus Taiwan added.

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The Future Of Microsoft Is Sunny With A Chance Of Thunderstorms

The past few years haven’t been kind to Microsoft. (There’s no need to walk down memory lane. We all know what’s happened.) But somehow that’s all changed in the past few days. Surface andWindows Phone 8, along with Windows 8 andXbox prove there’s still some fight left in the old dog. It’s a bit premature to say that the company is back and that the decades long string of mediocrity coming out of Redmond is over but the company is clearly focused and we haven’t seenthat Microsoft in a long, long time.

The shroud of mystery surrounding the Surface announcement earlier this week in LA had the press in a tizzy. We’d all been burned one too many times and the thought of something lame being announced loomed large. It is Microsoft, after all. What they managed to pull off was nothing short of spectacular, though. Microsoft employees were kept in the dark with most finding out at the same time as press. This wasn’t a case where employees were being sheepish with details either. Most simply had no idea.

Rumors surrounding the event swirled with some being sort of right and some being flat out wrong. The reason Surface was kept under wraps so tightly has a lot to do with the company’s horizontal product line. A vertically integrated one can lead to leaks due to the number of folks involved. There’s a reason Tim Cook said at D10 that Apple would be doubling down on security. Loose lips sink ships.

Like any Microsoft announcement though, the detractors came out in full force during and after the Surface announcement. Why have a Pro model? Why not announce pricing and availability? Why not let anyone try the Touch Cover? Couldn’t agree more.

Others, however, decided to scold Microsoft for “screwing” their hardware partners. First of all, Microsoft isn’t screwing the OEMs, they’re simply challenging them to do better. Fact is, both sides have been screwing each other for decades. Microsoft is simply setting the bar and the manufacturers need to put up or shut up so long as Microsoft delivers the software. And that’s still a big if. But the OEMs only have themselves to blame. A sentiment felt by others.

Analysts quoted in a Reuters report were quick to shoot down Surface saying Microsoft needed to undercut Apple’s iPad to be competitive.

“Analysts expect the slimmer Windows 8 tablet to struggle to compete with the iPad, which offers over 225,000 apps, and to a lesser extent with Google Inc’s Android-based tablets, such as the Samsung’s Galaxy Tab.”

Maybe Reuters just doesn’t know what they’re talking about? At best, this is pretty laughable. For starters, the product isn’t finished and hasn’t shipped. And to be honest, the whole app argument doesn’t apply here. The two use-case scenarios are completely different. The Surface may be similar in form to the iPad but it’s geared towards productivity and real multi-tasking. Why do you think they slammed a keyboard into the cover? Yes, Windows 8 and the entire Windows eco-system lack the sheer volume of apps found in iOS and Android but what more do you need than email, a web browser and Office on a device like the Surface?

Whereas the iPad is clearly being used to consume content, not creating it. As hard as Apple has tried at every iPad unveil to convince developers that the hardware can drive amazing software like Garage Band, iPhoto and Pages/Numbers/Keynote, the iPad remains an entertainment focused device. When you’re making billions of dollars off other people’s work why fight the power? Just bask in its glory and reap the rewards, I say.

I enjoyed the teaser video for Surface as much as the next guy/gal but that screamed Droid/Verizon marketing. Verizon killed it with that campaign. There’s a reason why most people assume that any Android device is simply called Droid. Whoever was in charge of that video and marketing as a whole going forward for Surface really needs to think of something distinctive and unique to the Surface brand.

The excitement drummed up on Monday trickled over to today’s public acknowledgement and developer preview of Windows Phone 8. Microsoft says Channel 9 saw more views today than past events. (To be honest, they haven’t had that much exciting news to share anyway.) Some might call that positive momentum.

Windows Phone 8 signals a massive momentum shift for the unification of Windows as a whole. A shared kernel with Windows adds enough incentive for developers to build for both without even thinking about it. But this group still has an uphill battle ahead of them. To date there hasn’t been a single “hero” or flagship device for the platform. Everywhere you look across the lineup you see a blank slate of black slabs. Aside from the Lumia 900, every other device in the lineup looks like every other device in the Android lineup.

Today Microsoft revealed the roadmap for current Windows Phone device owners to upgrade to a neutered version of the next OS, Windows Phone 7.8. It didn’t have to be that way, though. By all accounts, what we were shown today is a small portion of what Windows Phone 8 is. By announcing that 7/7.5 devices might only see a new Start Screen could be equated to suicide. Why would a potential buyer go and buy a device now knowing the next crop of devices in the fall will carry an updated and arguably better OS that will likely be future proof? Way to alienate your current customers and possibly push them towards another platform this coming fall.

They should have kept mum on the whole thing or declared that every software feature in WP8 would be applicable to existing devices. At least offer developers Native Code support. Wallet is compelling enough that you don’t really need NFC to reap the benefits of what it has to offer. Announcing that the Start Screen might be the only thing that ports over was fucking stupid. Classic Microsoft. Classic.

Still, there’s hope. Microsoft has yet to finalize Windows Phone 8 and what 7.8 could be. If enough developers jump on board and create some killer speech recognition apps like this, then Siri definitely has some competition. You also have hardware partners like Nokia building out and updating apps for current Lumia owners. Future WP8 Nokia devices will also ship with Nokia Maps, which is arguably some of the best turn-by-turn navigation software available and it’s free!

Where the Finnish handset maker fell short with the Lumia 900 was the camera. AT&T and even Nokia marketing touted the Carl Zeiss lens and folks at both Microsoft and Nokia will tell you (maybe not you but I’ve heard it from both sides) how disappointing it’s been. Nokia, however, has proven thatPureView as a technology is more than capable of capturing some amazing images. You won’t see a 41-megapixel camera in the next WP8 device from Nokia but you will see the core technology coupled with Scalado (Nokia is in the process of acquiring the team and IP) in an upcoming device. HTC is also doubling down on camera enhancements so competition will hopefully drive even further innovation. I standby my previous statement that Samsung will only dabble.

What Microsoft showcased today and earlier this week proves the company has finally come to its senses. It also highlights how vulnerable they’ve made themselves by setting such high expectations. Can they deliver? We’ll see but for now I’m excited to see how the rest of this year plays out.

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Windows Phone 8 Is A Great Big, Crazy, Beautiful Mess

The Lumia 900 sold me on Windows Phone. The 900 is a marriage of fresh hardware with a fun operating system. I dig the Start Screen with the Live Tiles. There are some shortcomings. The camera sucks, to be sure, and the phone isn’t yet available on Verizon. Plus, after using the phone for several weeks, it was clear that the phone’s large screen is wasted on Windows Phone 7.5. It’s more of the same concerning the 900′s HTC cousin, the Titan II. Microsoft clearly agrees.

Full disclaimer: I haven’t touched a Windows Phone 8 device yet. That said, it’s hard to look at the several dozen screen shots and demo videos from today’s event and not be excited about the future of Windows Phone 8. Yes, it’s a busy interface. But my oh my the new Start Screen is – if I may – a clusterfuck of goodness.

Windows had some cojones releasing Windows 7 some 18 months ago. It was totally different. It lacked key features. It had poor hardware and carrier support. But clearly ignoring analysts, pundits and ignorant bloggers, Redmond kept at it, steadily releasing updates that solve current issues while introducing new features.

The current release, Windows 7.5, is a solid mobile platform worthy of serious consideration. Admittedly, it’s not necessarily better than Android or iOS, but rather different in key ways that make it special. And now with Windows Phone 8, and in the interim, Windows Phone 7.8, the core system might actually be better than its competitors.

The new Start Screen that will debut on some current devices with Windows Phone 7.8. The Live Tiles are now customizable, allowing owners to completely reshape their Start Screen in a grid of application shortcuts. What’s more, an upcoming SDK will allow app developers to utilize this ability and craft their respective Live Tile for different sizes and functions.

This evolution matches the industry’s trend of supersized phone screens. Why have a relatively standard grid of Live Tiles when there is so much screen real estate on new phones? Short answer: With Windows Phone 7.8 and 8, you don’t have to!

Microsoft is allowing phone owners to totally customize their phone in ways not possible with iOS and Android. All iPhones look the same but no Windows Phone 8 device will look like any other. For better or worse, this organized chaos is a result of a philosophy that has always centered around users getting tasks down quickly. The New Start Screen is just the next step towards this goal – and it’s totally fresh.

Microsoft pulled out all the stops on today’s Windows Phone 8 event. Plus, this was just a preview of the Windows Phone 8 and 7.8. More info will come later. It was a media bonanza complete with pre-briefings and the like. Microsoft is clearly proud of its new baby and wanted to show it off — just like it did two days back with the Surface unveiling. It’s also clear that Microsoft has found a new swagger. Microsoft might be back.

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