After a billion, what next for Facebook?









MENLO PARK — In just eight years, Facebook signed up more than half the world's Internet population.


Now it's going after the rest.


Facebook wants to reach every single person on the Internet whether they are logging on from a laptop in Santa Monica, an iPhone in Tokyo or a low-tech phone with a tiny screen in Nairobi.





It's parachuting into market after market to take on homegrown social networks by currying favor with the locals and venturing where many people have spotty — if any — access to the Internet.


In Japan, it lets users list their blood types, which the Japanese believe — like astrological signs in the Western world — give insight into personality and temperament. In Africa, Facebook markets a stripped-down, text-only version of its service that works on low-tech mobile phones.


International growth is crucial to maintain its dominance as the world's largest social network. The company's scorching pace of growth has cooled especially in the United States. Facebook must coax users to sign up — and make sure it remains popular with the users it already has — or risk being knocked from its lofty perch.


"We're not a company that is just trying to add more people," said Chris Cox, Facebook's vice president of product. "What we are trying to do is build a service that everyone in the world can use."


But overseas growth that once seemed to come so easily is slower now. Facebook has already saturated most major markets around the globe. Eight out of 10 Facebook users are outside of the U.S.


"I don't think that Facebook has a chance of attracting another billion users," Wedbush Securities analyst Michael Pachter said.


Inside Facebook's Menlo Park, Calif., headquarters is a small army out to prove naysayers wrong. Above their desks they have hung flags from around the world that represent their nationalities. They obsessively scan screens that track user growth around the world.


They cheered and popped open champagne in September when the number of active Facebook users crossed 1 billion. But the moment of jubilation quickly passed as they redoubled their efforts to spread Facebook around the globe.


Naomi Gleit is the soft-spoken, headstrong 29-year-old product manager in charge of growth at Facebook. She says Facebook's future is on mobile devices, the medium by which most people will experience the Web in coming years. Facebook now works on more than 2,500 different phones, helping it gain a foothold in emerging markets. And it is forging relationships with mobile phone operators around the world.


Gleit's 150-member team has boots on the ground in far-flung places armed with low-tech phones and cheap data plans. Even team members here carry Nokia phones alongside their iPhones to update their status or check their News Feed.


"We originally built a product for ourselves," Gleit said. "This is different. Now we need to understand the experience of users who are not like us."


Analysts say Facebook already has established an impressive track record of uprooting entrenched competitors. In Britain, it displaced the dominant social network Bebo, forcing AOL to sell it at a huge loss. In Germany, Facebook overtook the homegrown StudiVZ. Facebook even broke Google social network Orkut's stranglehold on Brazil and India.


In 2009, it launched a clever tool to help Facebook users find their Orkut friends on Facebook and instantly send them friend requests. Two years later it swiped Google's top executive in Latin America, Alexandre Hohagen. Facebook sprinted ahead of Orkut one year ago, and now has 61 million active users in Latin America's largest country.


Facebook is treating India as a test lab for how it can spread in other emerging markets such as Indonesia. Facebook, which has offices in Hyderabad, India, has grown from 8 million users in 2010 to 65 million users today. It is aggressively targeting India's youth. A few hundred young Indian programmers recently jammed a Facebook hackathon at a Bangalore convention center to chug chai and brainstorm new apps that would appeal to their friends.


But Facebook has its eyes on a much bigger prize beyond the country's 100 million Internet users: the 900 million-plus Indians on mobile phones. Some analysts predict India will have more Facebook users than any other country including the United States by 2015.


The company also faces significant challenges in India. It must make the service captivating on low-tech mobile phones with unreliable Internet connections and it must gingerly navigate demands from the Indian government to remove objectionable content without alienating users.


Facebook is making some of its biggest moves in Russia, South Korea and Japan, the only major markets where it operates but has penetration of less than 50%, according to research firm ComScore.





Read More..

Putin aide denies Russian president has health problems












TOKYO/MOSCOW (Reuters) – Vladimir Putin is in good health, his chief of staff said on Friday after Japanese media said Prime Minister Yoshihiko Noda had postponed a visit to Moscow next month because the Russian president had a health problem.


A former KGB officer who enjoys vast authority in Russia, Putin has long cultivated a tough-guy image, and health issues could damage that. His condition though has been questioned in some media since he was seen limping at a summit in September.












Three Russian government sources told Reuters late in October that Putin, who began a six-year term in May and turned 60 last month, was suffering from back trouble, but the Kremlin has dismissed talk that he had a serious back problem.


Putin’s health troubles stem from a recent judo bout, Belarussian President Alexander Lukashenko said this week.


Then on Friday Japanese news agencies Kyodo and Jiji reported that Prime Minister Noda talked about the delay of a visit planned for December in a meeting with municipal officials on the northern island of Hokkaido.


“It’s about (President Putin’s) health problem. This is not something that can easily be made public,” Jiji cited one of the officials as quoting Noda as saying.


But Putin’s chief of staff Sergei Ivanov denied there was any problem.


“Please don’t worry, don’t be concerned. Everything is in order with his health,” Putin’s said in Vienna, according to state-run Russian news agency RIA.


In an interview published on Friday in the popular Russian tabloid Komsomolskaya Pravda, Putin’s spokesman Dmitry Peskov said rumors about a spine problem were “strongly exaggerated”.


“He is working as he has before and intends to continue working at the same pace,” Peskov said.


“He also does not plan to give up his sports activities and for this reason, like any athlete, his back, his arm, his leg might sometimes hurt a little – this has never gotten in the way of his ability to work.”


Putin had been expected to make several foreign trips in late October or November, but they did not take place.


Putin is however due to visit Turkey on Monday and Turkmenistan on Wednesday.


Putin’s foreign policy adviser, Yuri Ushakov, made amply clear the Kremlin was displeased by the public discussion of scheduling by Japanese officials and denied that Noda’s visit had been postponed, saying no date had been set.


“It is just unethical to name the dates that were discussed. There were several: at first it was October, November, December, January … then we even shifted to February,” Ushakov said, adding that the sides eventually agreed tentatively on January.


He said the diplomatic process of agreeing dates for the visit should have been “hermetically sealed”.


Putin’s image as a fit, healthy man helped bring him popularity when he rose to power 13 years ago because of the stark contrast with his predecessor Boris Yeltsin, who was sometimes drunk in public and had heart surgery when president.


He has used activities like scuba diving and horseback riding to maintain that image.


On Friday, Putin met leaders of parliamentary factions in his Novo-Ogaryovo residence outside Moscow. He appeared in good health and was walking without any sign of a limp.


Likely to be on the agenda in talks between Russian and Japanese officials are energy cooperation and a decades-old dispute over islands north of Hokkaido known as the Southern Kurils in Russia and the Northern Territories in Japan.


(Additional reporting by Darya Korsunskaya; Writing by Tomasz Janowski and Steve Gutterman; Editing by Nick Macfie and Jon Hemming)


Celebrity News Headlines – Yahoo! News


Read More..

Male shot by police on South Side









An off-duty Chicago police officer who witnessed a crash during a police chase shot the driver of a stolen SUV after it struck a woman crossing the street late Thursday night, authorities said.


The SUV's drivert sustaine a non-life-threatening wound to his hand or arm, Fraternal Order of Police Spokesman Patrick Camden said.


The crash and subsequent shooting happened about 10 p.m. at the intersection of 37th Street and Dr. Martin Luther King Jr. Drive, two blocks south and three blocks east of the police department headquarters, in the city’s Bronzeville neighborhood, police said. 





A gray SUV was fleeing Wentworth District police northbound on King Drive when it made a left turn through a red light trying to head west on 37th Street, hit a light pole, hit a female pedestrian, and then hit a concrete wall that surrounds the massive three-story brick home on the corner, authorities said. 


An off-duty officer, on his way home from work with his girlfriend and his dinner, was stopped at the light facing south and saw the chase coming north up King Drive. His girlfriend was getting out of the passenger side about this time, Camden and police said. 


As the off-duty officer approached the stolen SUV, its driver tried to reverse back toward the officer, who fired twice, fearing that the SUV would hit his girlfriend. The SUV hit the officer’s black Yukon, Camden said, and its driver put the SUV into gear and tried to escape again. 


The officer fired two more times, hitting the man in the hand, who gave up and was taken to Mercy Hospital and Medical Center. 


The female pedestrian’s age wasn’t available, and she was taken to the University of Chicago Hospitals. The officer’s girlfriend, whose age wasn’t available, was also taken to Mercy Hospital and Medical Center. 


Police blocked King Drive in both directions between the 3500 block and 39th Street, and 37th Street was also blocked. The CTA rerouted buses in the area. 


pnickeas@tribune.com
Twitter: @peternickeas



Read More..

Gotye wins big at Australia’s Aria music awards












SYDNEY (AP) — Gotye has taken home album of the year at Australia‘s Aria music awards for his internationally acclaimed “Making Mirrors.”


The album features the Belgian-born, Australian-raised singer’s multiplatinum hit “Somebody That I Used to Know,” which was the top song of the year on digital music service Spotify.












Gotye won three other awards at Thursday night’s Arias, including best pop release, best Australian live act and best male artist.


The annual awards show is Australia’s version of the Grammys. This year’s gala featured appearances by Taylor Swift, Nicki Minaj and Russell Brand.


Fans shrieked with glee when British pop group One Direction was dubbed best international artist. The quintet thanked their Aussie supporters via video link.


Entertainment News Headlines – Yahoo! News


Read More..

Recipes for Health: Asian Chopped Salad With Seasoned Tofu ‘Fingers’ — Recipes for Health


Andrew Scrivani for The New York Times







I like to serve the baked seasoned tofu “fingers” warm on top of the salad. They are delicious cold, too; it is worth making up a separate batch for the refrigerator. If you have an assortment of vegetables leftover from Thanksgiving dinner, throw them in!




For the Tofu:


1/4 cup soy sauce


2 tablespoons mirin (sweet Japanese rice wine)


1 tablespoon rice vinegar


1 tablespoon minced or grated fresh ginger


1/2 teaspoon sugar


1 tablespoon Asian sesame oil


1 pound firm tofu


For the salad:


1 romaine heart, chopped


5 cups mixed chopped or diced vegetables such as:


Green or red cabbage


Celery (from the inner heart)


Red pepper


Radishes, sliced or chopped


1/4 cup dry roasted peanuts, coarsely chopped


1/4 cup chopped cilantro (more to taste)


1 serrano pepper, seeded and minced (optional)


For the dressing:


2 tablespoons fresh lime juice


1/4 cup tofu marinade, above


2 tablespoons canola or peanut oil


1/3 cup low-fat buttermilk or plain nonfat yogurt


1. Marinate the tofu: combine the soy sauce, mirin, rice vinegar, ginger and sugar in a 2-quart bowl. Whisk in the sesame oil and combine well. Drain the tofu and pat dry with paper towels. Slice into 1/3-inch thick slabs and cut the slabs in half lengthwise to get “fingers” approximately 1/3 inch thick by 3/4 inch wide. Blot each finger with paper towels. Add to the bowl with the marinade and gently toss to coat. Cover and refrigerate for 15 minutes to an hour, or for up to a day.


2. Meanwhile, heat the oven to 375 degrees and line a baking sheet with parchment. Lift the tofu out of the marinade and arrange the pieces on the parchment-covered baking sheet. Bake for 7 to 10 minutes, until the edges are just beginning to color and the marinade sets on the surface of the tofu. Remove from the heat.


3. In a large bowl, combine all of the salad ingredients. Whisk together the dressing ingredients and toss with the salad. If desired, transfer to a platter. Garnish with the tofu strips and serve.


Yield: Serves 4


Advance preparation: The chopped vegetables can be prepared up to a day ahead and refrigerated in a well covered container. The tofu marinade will keep for two days in the refrigerator. The baked seasoned tofu will keep for several days in the refrigerator.


Nutritional information per serving: 317 calories; 20 grams fat; 2 grams saturated fat; 8 grams polyunsaturated fat; 9 grams monounsaturated fat; 1 milligram cholesterol; 19 grams carbohydrates; 5 grams dietary fiber; 470 milligrams sodium (does not include salt to taste); 16 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


Read More..

U.S., state to fund battery research at Argonne









The U.S. Department of Energy has chosen Argonne National Laboratory, in suburban Lemont, to become America's capital for battery technology.

The announcement, to be made Friday, will include building a research facility to coordinate the clout and brainpower of five Department of Energy national laboratories, five universities and four private companies that independently have been working to advance battery technology.






Funded with $120 million from the DOE and a $35 million commitment from Gov. Pat Quinn, the Joint Center for Energy Storage Research is expected to develop lighter, cheaper batteries for everything from smartphones to electric vehicles that store more power and charge faster.

Chicago would be the fourth so-called Energy Innovation Hub that the DOE has established since 2010. The concept is modeled after research and development programs that spurred breakthroughs in the past, such as the Manhattan Project, which produced the first atomic bomb.

Other hubs have been devoted to modeling and simulating nuclear reactors, developing fuels from sunlight, and improving energy efficiency in buildings.

Like the space race of the 1960s, the U.S. is battling other nations to be at the forefront of a rapidly growing $42 billion worldwide market for rechargeable batteries that's growing 8.6 percent per year. That number comes from research and consulting firm Frost & Sullivan, which predicts the industry's growth rate and revenues to double by 2018.

A breakthrough in battery technology would have major implications for the auto, wind and solar industries. In particular, the wind and solar industries are looking for affordable batteries to store intermittent power so they can provide power even when the wind isn't blowing or the sun isn't shining.

Batteries that store electricity from the electrical grid are also in demand in countries where outages are frequent or in the case of natural disasters that black out cities for days.

"We're going to be the center of the universe when it comes to charging batteries and storing energy," Quinn told the Tribune in an interview Thursday.

Quinn committed the state to giving $5 million to the project through a capital construction budget he controls designed for job creation and said he will work with legislators to garner an additional $30 million in state funding to help with the building's construction.

The DOE will dole out the $120 million over five years. News of the hub was first reported by Crain's Chicago Business.

A successful battery hub in Illinois, Quinn said, would drive companies in the industry to set up shop nearby and encourage scientists and engineers to stay in the Midwest.

"These people would have the opportunity to change the world. It's transformational," Quinn said.

Earlier this week, Smith Electric Vehicles announced it would make battery-powered trucks in Chicago and hire about 200 workers. Wanxiang, a Chinese automotive company with North American headquarters in Chicago, is vying to purchase bankrupt Massachusetts-based battery-maker A123. As of last week Woodridge-based Palladium Energy became the largest independent battery pack-maker in the Americas and Europe after acquiring competitor MicroSun Technologies LLC.

The Chicago-based Clean Energy Trust, a nonprofit dedicated to accelerating the development of clean-energy businesses in the Midwest, will be responsible for ushering technology from Argonne to the marketplace with the help of Dow Chemical Co., Applied Materials Inc. and Johnson Controls Inc., which all have a financial interest in seeing batteries advance. Johnson, based in Milwaukee, also is vying for the A123 battery assets.

In addition to its own scientists, Argonne would be coordinating the research and development from Lawrence Berkeley, Pacific Northwest, Sandia and SLAC National Accelerator as well as students and researchers at Northwestern University, University of Chicago, University of Illinois at Chicago, University of Illinois at Urbana-Champaign and the University of Michigan.

"I think this is probably the greatest opportunity that we have seen in a long time to bring federal funding that's intended to promote the creation of new companies and jobs," said U.S. Rep. Dan Lipinski, D-Ill.

Tribune reporter Ted Gregory contributed.

jwernau@tribune.com



Read More..

Officials: Winning Powerball tickets sold in 2 states









Powerball officials say tickets sold in Arizona and Missouri matched all six numbers to win the record the record $579.9 million jackpot; now the wait for winners has begun.


The numbers drawn Wednesday night are: 5, 16, 22, 23, 29 and Powerball of 6.


A lottery official said late Wednesday that the jackpot increased to $579.9 million by the time of the drawing, making the cash option $379.8 million. The jackpot was boosted to $500 million on Tuesday and raised again Wednesday morning to $550 million.








Powerball officials said they believed there was a 75 percent chance that the winning combination of numbers would be drawn Wednesday night.

But many of the customers who lined up at a 7-Eleven store at Wacker and Wabash believed they had a 100 percent chance of winning.

"I've got it," Marvin Harvey, 48, told the store clerk. "This is it."

And Harvey has plans. First off, having a private jet fly him and about 40 others to the SoHo neighborhood in New York City to eat and shop.

"Then take it to Paris and then go on a Mediterranean cruise," he said. "Then come back and share it with the world."

He would also give about 10 percent to churches and maybe start an organization to help the homeless. "You have so much money you have to share it," he said.


Martin Ho, 34, said he has given more thought about how to better his chances at winning the jackpot than he has about what he would do with the money.

"My goal is to have 100 different numbers between all the pools," he said. "I think I'm at (about) 90 numbers."

Ho popped into the 7-Eleven store this morning with colleague Whitney McKedy to purchase about 10 tickets jointly.

Ho said he is part of a handful of pools, including one with 50 numbers split between 10 people. He has also bought some tickets for himself.

As for what he would do with the money? "Change my name, hire a lawyer," he joked.  "I don't really think about it. It's more about the energy."

Zafer Aksit, 63, was a long way from home when he threw in $10 for lottery tickets. The radiologist flew into the city last week from Instanbul, Turkey for a medical conference. While he was in his hotel room in the Loop, he saw on the news that the jackpot had gotten up to $500 million and thought it was worth a shot.

"I thought, 'Why not?' "

Aksit insisted he wouldn't spend the money on lavish gifts on himself. "I wouldn't go on a shopping spree," he said.

He thinks the money would be better spent as investments in local businesses and non-profits, like a breast cancer clinic.


Powerball has not had a winner for two months.  Powerball is sold in Illinois and 41 other states, as well as Washington, D.C. and the U.S. Virgin Islands.

The chance of winning the Powerball jackpot are about one in 175 million, compared to about one in 280,000 for being struck by lightning.


Despite the long odds, the record payout has drawn interest from around the world, said Mary Neubauer, a spokeswoman for the Iowa Lottery, where Powerball is based. Lottery officials have received calls and emails from people outside the United States asking if they can buy a ticket from afar. They cannot.


"Sales across the country are just through the roof. It means lots of people are having fun with this, but it makes it difficult to keep up with the (jackpot) estimate."


The previous top Powerball prize of $365 million was won in 2006 by ConAgra slaughterhouse workers in Nebraska.


A $656 million Mega Millions jackpot set a world lottery record in March. That prize was split three ways. One of the winning tickets was held by Merle and Patricia Butler of Red Bud in southern Illinois. The retired couple took home nearly $119 million.


Tribune reporter Naomi Nix, the Associated Press and Reuters contributed



Read More..

X Factor judge Louis Walsh settles defamation case












DUBLIN (Reuters) – Television personality and pop music producer Louis Walsh on Wednesday settled a 500,000 euro ($ 640,000) defamation case against News Group Newspapers in Ireland.


The deal came after Walsh, best known for his role as a judge on the hit television show “The X Factor”, sued the group for publishing a story last year based on false allegations that he had groped a man in a Dublin night club.












Leonard Watters, who made the accusations before later retracting them, was jailed for six months earlier this year.


Paul Tweed, Walsh’s solicitor, said: “The publishers of the Irish, UK and online editions of the Sun have this morning unreservedly apologized to Louis Walsh.


“They have also agreed to pay very substantial damages of 500,000 euros together with his legal costs.”


Walsh, who managed Irish boy bands Westlife and Boyzone, said the story had a “terrible effect” on him.


“I’m very satisfied with this morning’s total vindication for me, but I remain very angry at the treatment I received at the hands of the Sun,” he said outside court.


“I have the utmost respect and time for most journalists with whom I’ve always enjoyed a good relationship, and I’m therefore absolutely gutted and traumatized that these allegations should have been published


“I wouldn’t wish this on my worst enemy.”


The Sun said it apologized “unreservedly”.


(Reporting by Sarah O’Connor)


Celebrity News Headlines – Yahoo! News


Read More..

Recipes for Health: Roasted Sweet Potato and Crispy Kale Salad — Recipes for Health


Andrew Scrivani for The New York Times







This is a great salad to make with leftover roasted sweet potatoes but you can also roast them just to make the salad. The trick to succeeding with crispy kale is to make sure it is completely dry before you put it in the oven. If you are using bunched kale I recommend that you stem and wash it, spin it twice in a salad spinner, then set the leaves in single layers on a few layers of paper towels and roll them up. You can then refrigerate for up to a day or two. Once the salad is assembled, the portion of kale that you toss with the sweet potatoes will soften, and the kale that surrounds the sweet potatoes will remain crispy.




2 large or 3 medium sweet potatoes


1 generous bunch curly kale (about 1 pound), stemmed, leaves washed and dried thoroughly (see above)


2 tablespoons extra virgin olive oil


Salt to taste


1/4 cup broken pecans, lightly toasted


For the dressing:


1 small garlic clove, pureed


2 ounces Roquefort or blue cheese, crumbled


1 teaspoon chopped fresh thyme leaves


1/2 cup buttermilk


1 tablespoon sherry vinegar


Freshly ground pepper


1. To roast the sweet potatoes, heat the oven to 425 degrees. Rinse the sweet potatoes and pierce in several places with the tip of a paring knife. Line a sheet pan with foil and place the sweet potatoes on the foil. Bake 40 to minutes to an hour, depending on the size of the sweet potatoes. They are done when they are soft and beginning to ooze. Remove from heat and allow to cool.


2. Meanwhile make the dressing (or you can make it a day ahead). In a mini-processor or in a mortar and pestle blend together the garlic, cheese, thyme, buttermilk, and vinegar. Season to taste with salt and pepper. For best results, leave it to sit for at least an hour.


3. To make the crispy kale, heat the oven to 300 degrees. Line two baking sheets with parchment. Make sure that your kale leaves are dry and tear them into medium-size pieces and toss with the olive oil. Gently knead the leaves between your thumbs and fingers to make sure they are coated with oil. Place in an even layer on the baking sheets. Do this in batches if necessary. Place in the oven and roast for 16 to 22 minutes, until the leaves are crisp but not browned. If some of the leaves crisp before others, remove them to a bowl or sheet pan and return the remaining kale to the oven. Watch closely as once the kale browns it will taste bitter. Season to taste with kosher salt or fine sea salt. Allow to cool.


4. Peel the sweet potatoes, quarter lengthwise and slice. Place in a salad bowl and add the pecans and half the crispy kale.


5. Line the edge of a platter with the remaining crispy kale. Toss the sweet potato mixture with the dressing, place in the middle of the platter and serve at once.


Yield: Serves 4 as a main dish


Advance preparation: The crispy kale will remain crisp for a day at room temperature. Sweet potatoes can be baked and refrigerated for up to four days. The salad should be served right away once assembled.


Nutritional information per serving: 378 calories; 17 grams fat; 4 grams saturated fat; 3 grams polyunsaturated fat; 9 grams monounsaturated fat; 14 milligrams cholesterol; 49 grams carbohydrates; 8 grams dietary fiber; 431 milligrams sodium (does not include salt to taste); 11 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


Read More..

Groupon CEO Mason offers to step down









Groupon Inc Chief Executive Andrew Mason, under fire for a plunging share price and tapering growth, declared on Wednesday he would fire himself if he ever thought he was the wrong man for the job.

Mason, whose performance at the helm will come under scrutiny from his board of directors during a regular board meeting Thursday, said it would be "weird" if they did not. But he said he believed the board was comfortable with his strategy.

Shares in the company, once touted as innovating local business advertising t hrough the marketing of Internet discounts on everything from spa treatments to dining, surged 8 percent to $4.25 i n the afternoon.

"It would be more noteworthy if the board wasn't discussing whether I'm the right guy for the job," Mason said in an interview from a Business Insider conference in New York. "If I ever thought I wasn't the right guy for the job, I'd be the first person to fire myself."

"As the founder and creator of Groupon, as a large shareholder ... I care far more about the success of the business than I do about my role as CEO," he said.

Groupon has shed four-fifths of its value since its public trading debut as an investor favorite during last year's consumer dotcom IPO boom, and Mason himself has presided over a string of high-profile executive departures.

Wall Street has grown uneasy about the viability of its business as fever for daily deals has cooled among consumers and merchants, hurting its growth rate.

In the interview broadcast from the conference, the outspoken and sometimes-zany co-founder argued his company was going through a period of volatility but believed it was on the right path. Groupon's efforts to reduce its reliance on plain vanilla deals include bumping up its "Goods" retail business, increasing the selection of "persistent" or long-running deals, and allowing users to search for such deals on demand.

Shares in Groupon spiked after the interview and were up 8 p ercent at $4.2 6, still way below its $20 market debut price.

Groupon and rivals in the daily deals business, like Amazon.com-backed LivingSocial, were supposed to change the very nature of small-business advertising. Instead, they were forced to revamp their business models as evidence mounts that their strategy was flawed.

This month, Groupon reported another quarter of disappointing earnings, and its stock went as low as $2.60 on Nov. 12.

Europe has been a particular problem for Groupon, partly because the sovereign debt crisis has sapped demand for higher-priced deals. Groupon was also offering steeper discounts, turning off some European merchants.

International revenue, which includes Europe, grew just 3 percent to $277 million in the third quarter, while North American revenue surged 80 percent to $292 million.

Adding to its difficulties, the U.S. Securities and Exchange Commission is looking into Groupon's accounting and disclosures, areas that raised questions among some analysts during its IPO.

But Mason shrugged off speculation that the company might run into a cash crunch and go bankrupt. The company has said it had $1.2 billion in cash and equivalents with no long-term debt.

"There was a period when those stories started that I'd go to my CFO and say: 'How would that happen, walk me through what would be required for us to actually go bankrupt'," Mason said. "And it's like an end of days, apocalyptic scenario. The business would have to go into severe negative growth for something like this. The scenario is so absurd there's no evidence for it."



Read More..