Andrew Mason's Billionaire Status Vanishes in Less Than a Month as Groupon Valuation Drops by $9 Billion

by Knowlton Thomas

Groupon's successful IPO made founder and CEO Andrew Mason (and a couple others deeply involved in the company) a billionaire. Now, less than a month later, that prestigious status has rapidly evaporated.

After the stock debuted, it jumped 50% on opening day. However, following a hefty bout of extreme shorting, GRPN shares have slid. Today, while the vast majority of the market is rallying by an average of 3%, Groupon's stock is definitively in the red.

Andrew's 7.3% stake in the company is worth less than $800 million now. Groupon's stock has fallen from a high of $30 two weeks ago to just $16 today. This means the company has lost a whopping $9 billion in valuation in a matter of weeks. Anyone with some sensibility shouldn't be surprised, though, as Groupon was overpriced to begin with. By this point, Google's probably glad Andrew was too foolish to sell his company for $6 billion.

Photo: AP

Chicago, Illinois, United States

Launched in November 2008, Groupon features a daily deal on the best stuff to do, see, eat, and buy in a variety of cities across the United States. We have about 200 wonderful people working in our Chicago office (a handful of whom you can see to your right), along with a smattering of people in Groupon's other cities. Our company philosophy is pretty simple: we treat our customers the way we... more

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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes and author of Tempest Bound. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys hiking, tennis, and martial arts. more

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