BUSINESS

Tim O'Shaughnessy to resign as LivingSocical CEO

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(WJLA) - The last of the four original creators of LivingSocial is stepping down from his role as the CEO of the daily deals company.

LivingSocial CEO Tim O'Shaughnessy announced on a post to the Washington-based company's website that he would be resigning his position later this year.

In his memo to employees, O'Shaughnessy said that he is leaving the company in the most stable and healthy shape in its seven-year history.

"I have given my all to the mission of this company," he said. "And I remain 100 percent convinced the ingredients for success are here."

O'Shaughnessy, along with Aaron Batalion, Eddie Frederick and Val Aleksenko, formed LivingSocial in 2007, and two years later, the team launched its first daily deals service. It expanded rapidly in the D.C. area, moving into several offices and creating jobs for hundreds.

However, the company has fallen onto hard financial times over the past several years, posting multi-million dollar losses throughout 2013. LivingSocial announced a $50 million loss in the first quarter of 2013, and in quarter three, the company lost another $25 million.

The CEO, in his memo, said that the company should build momentum off of its better-than-expected holiday season.

"My responsibility is to recognize that now is the best time to transition leadership - when that full set of ingredients is available to be used most effectively to shape the company's future," O'Shaughnessy said.

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