LivingSocial Inc., a daily deal coupon site that’s partially owned by Amazon.com Inc., said co- founder and Chief Executive Officer Tim O’Shaughnessy is stepping down amid stagnant sales.
LivingSocial is starting the search for a replacement today and aims to name a new CEO in the first half of 2014, O’Shaughnessy said in a blog post on the Washington-based company’s website.
The business of selling deals for nail salons, gym memberships and weekend getaways through daily e-mail blasts has slowed, hurting companies such as LivingSocial and its bigger rival, Groupon Inc., whose former CEO Andrew Mason stepped down last year.
“The road we’ve traveled has not been straight and it has not been without bumps, but it has been, undoubtedly, extraordinary,” O’Shaughnessy said in the blog post. He didn’t say why he’s leaving or what he plans to do next.
Amazon, which owns a 31 percent stake in LivingSocial, said in October that the startup’s revenue in the first nine months of the year slipped to $384 million from $387 million in the same period a year earlier. Amazon, based in Seattle, wrote down the value of its investment to $15 million from $25 million at the end of June.
Editors: Ari Levy, Pui-Wing Tam. To contact the reporter on this story: Adam Satariano in San Francisco at [email protected] To contact the editor responsible for this story: Pui-Wing Tam at [email protected]