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Groupon ex-CEO says the company still has a chance

Consumers and business owners should want Groupon to succeed because its model still offers unique benefits, its founder said Monday.

Shares of Groupon, which partners with businesses to offer deals to customers, have plummeted 65 percent this year, partly on a third-quarter revenue miss and weaker-than-expected guidance reported earlier this month. Still, Groupon's existing relationship with small businesses — and the reach it offers them — leave it in a position to rebound, said former Groupon CEO and current investor Andrew Mason.

"Regardless of their execution in the past, they're positioned to make that work," he said on CNBC's "Squawk Alley."

Andrew Mason, Groupon founder
Johannes Simon | Getty Images
Andrew Mason, Groupon founder

Mason, who was replaced as CEO in 2013, said the company's "terrible experiences" may have contributed to large private companies delaying public offerings. He also declined to speculate how Groupon's decision to reject Google's reported $6 billion takeover offer in 2010 affected companies' thinking about acquisitions.

Groupon posted a net loss of $27.6 million in the third quarter, as active customers grew 4 percent from the previous year to 48.6 million. Amid the struggles and new Chief Executive Rich Williams' transition to the post, Mason recently wrote a blog outlining why people should "root" for Groupon.

"We should want Groupon to figure out how to help small business," Mason said Monday.

Aside from his recent defense of Groupon, Mason has worked to expand his audio tour app, Detour, to multiple U.S. cities. He plans to roll out the platform in Los Angeles, New York and Chicago in the coming year.