Stymied by a GOP House, Obama looks ahead to 2014 to cement his legacy

President Obama, now facing the consequences of automatic spending cuts and the complications they raise for his broader domestic agenda, is taking the most specific steps of his administration in an attempt to ensure the election of a Democratic-controlled Congress in two years.

“What I can’t do is force Congress to do the right thing,” Obama told reporters at the White House Friday after a fruitless meeting with Republican leaders to avert the country’s latest fiscal crisis, known as the sequester. “The American people may have the capacity to do that.”

Obama, fresh off his November reelection, began almost at once executing plans to win back the House in 2014, which he and his advisers believe will be crucial to the outcome of his second term and to his legacy as president. He is doing so by trying to articulate for the American electorate his own feelings — an exasperation with an opposition party that blocks even the most politically popular elements of his agenda.

Obama has committed to raising money for fellow Democrats, agreed to help recruit viable candidates, and launched a political nonprofit group dedicated to furthering his agenda and that of his congressional allies. The goal is to flip the Republican-held House back to Democratic control, allowing Obama to push forward with a progressive agenda on gun control, immigration, climate change and the economy during his final two years in office, according to congressional Democrats, strategists and others familiar with Obama’s thinking.

“The president understands that to get anything done, he needs a Democratic majority in the House of Representatives,” said Rep. Steve Israel (D-N.Y.), chairman of the Democratic Congressional Campaign Committee. “To have a legacy in 2016, he will need a House majority in 2014, and that work has to start now.”

This approach marks a significant shift in the way Obama has worked with a divided Congress. He has compromised and badgered, but rarely — and never so early — campaigned to change its composition.

Democrats would have to gain 17 House seats to win back the majority they lost in 2010, and their challenge involves developing a persuasive argument for why the party deserves another chance controlling both Congress and the presidency. In the last election, American voters reaffirmed the political status quo in Washington, choosing to retain a divided government.

Of all the presidents since Franklin D. Roosevelt, only Bill Clinton picked up House seats for his party in the midterm election of his second term
. His approval rating on the eve of the 1998 contest was 65 percent, 14 points above Obama’s current public standing.

The specific steps Obama is taking to win back the House for his party mark an evolution for a president long consumed by the independence of his political brand.

Obama has committed to eight fundraisers for the Democratic Congressional Campaign Committee this year, compared with just two events in 2009. The Democrats lost the House the following year, and Obama’s legislative agenda has largely stalled since then.

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Second leak at North Sea oil platform forces evacuation

LONDON: An oil leak at a North Sea platform caused it to be partially evacuated on Saturday, its Middle East operator said, the second such incident at the installation in less than two months.

The Alpha Cormorant platform and the pipeline system it services were shut down as a precaution, operator Abu Dhabi National Energy Company (TAQA) said in a statement.

The company said it had evacuated 71 of its 145 non-essential staff from the platform, situated 160 kilometres northeast of Lerwick on the Shetland Islands north of Britain, and that everyone was safe and well.

"TAQA Bratani can confirm that a hydrocarbon release detected in one of the Cormorant Alpha platform legs has now been contained, with no further hydrocarbon release," the company said.

"TAQA continues to monitor the situation on Cormorant Alpha and is working with its partners to have the Brent pipeline system operational as soon as possible."

The leak was discovered during maintenance work at 0940 GMT on Saturday morning, TAQA said.

The company said no oil was released into the environment during the leak.

A similar leak occurred at the platform on January 15, also causing the shutdown of the platform and the pipeline infrastructure.

Cormorant Alpha, which was built in 1978, handles about 90,000 barrels per day of crude oil, of which 42,600 are produced by TAQA.

- AFP/jc

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Law sacrosanct, let's not take it into our hands

PATNA: "What is illegal in the police raiding a journalist?" an IG of police asked a TV journalist defending Nawada SP Lalan Mohan Prasad and slamming the TOI report, 'Journalist raided after news on SP thumbing nose at judiciary' on February 28. "Nothing," the journalist replied and retorted, "how much it is legal for SP Prasad to sit on a non-bailable warrant of arrest against a sub-inspector and allow him to run a police station?" The IG did not have an answer.

There's another question: If all was well, why did Bihar Human Rights Commission chairman issue notices to the state DGP and the Nawada SP to explain the Nawada police's conduct? The rights panel chief S N Jha is a retired justice who certainly knows legalities and illegalities better than most of us.

Justice Jha's move apart, does any citizen - powerful or powerless - have the right to defy an order passed by a court of law? If a person who is under oath to uphold the rule of law and orders passed by courts of law chooses to do the opposite, it is bound to excite the people and bring a bad name to the society and state in which we live.

It all began not because of the raid on a journalist but because Nawada assistant public prosecutor (APP) Mehboob Alam was arrested by a sub-inspector in July last year. The man in black coat had gone to lodge an FIR following alleged assault on an imam by anti-social elements. He was paraded in the court with a rope tied around his waist the next day, he alleged in a complaint petition to the Nawada CJM. This shows how much respect the Nawada police have for human rights.

This happened with an APP, who is part of the police system and who pleads cases in courts on behalf of the police. If the Nawada police could do this to a government lawyer, the common man's fate can be well imagined.

This newspaper came to play its role when the lawyer on February 24 threatened to go on hunger strike to press for justice to him. Is it a crime on the part of a newspaper not to look the other way when such brazen violations of human rights take place?

Even if the raid was legal, the timing and the motive raise eyebrows. Why just a day after the news report appeared? Why at 8.30pm when people in villages like Makanpur prepare to sleep after the day's hard work? Had the police got a tip-off that the journalist was packing up to flee from the country? Reams and reams have been written in Patna newspapers against so many officials, including DGP Abhayanand. They didn't order the forces at their disposal to march to the premises of the journalists concerned, did they?

SP spurned offer to send rejoinder

SP Prasad, on the other hand, has ended up trying to put this newspaper under pressure. This despite the fact that every TOI journalist he spoke to after the publication of 'Judge proposes, cop disposes' on February 26 offered him a simple way of redressal of his grievances - a rejoinder which is the normal process of undoing the media's errors, if any, across the world.

As for the media-baiters who argue all journalists are a bunch of morons who misuse their powers to get away with crime, has anyone read any news report in any of the Patna newspapers defending such a journalist? At least I have not - during the last 21 years of my life as a Bihar-based journalist.

Two cops suspended

Nawada SP Lalan Mohan Prasad on Saturday suspended SI Vindhyachal Prasad and ASI Arun Kumar Singh, who were accused in a complaint case related to arrest and assault of an APP, Mehboob Alam. The SP returned here from Patna after three days.

SDPO, Nawada, Sahariyar Akhtar telephonically confirmed the suspension of these two police officials. But the Nawada SP has still failed to execute the non-bailable warrant of arrest issued by the chief judicial magistrate against Vindhyachal Prasad.

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We Didn’t Domesticate Dogs. They Domesticated Us.

In the story of how the dog came in from the cold and onto our sofas, we tend to give ourselves a little too much credit. The most common assumption is that some hunter-gatherer with a soft spot for cuteness found some wolf puppies and adopted them. Over time, these tamed wolves would have shown their prowess at hunting, so humans kept them around the campfire until they evolved into dogs. (See "How to Build a Dog.")

But when we look back at our relationship with wolves throughout history, this doesn't really make sense. For one thing, the wolf was domesticated at a time when modern humans were not very tolerant of carnivorous competitors. In fact, after modern humans arrived in Europe around 43,000 years ago, they pretty much wiped out every large carnivore that existed, including saber-toothed cats and giant hyenas. The fossil record doesn't reveal whether these large carnivores starved to death because modern humans took most of the meat or whether humans picked them off on purpose. Either way, most of the Ice Age bestiary went extinct.

The hunting hypothesis, that humans used wolves to hunt, doesn't hold up either. Humans were already successful hunters without wolves, more successful than every other large carnivore. Wolves eat a lot of meat, as much as one deer per ten wolves every day-a lot for humans to feed or compete against. And anyone who has seen wolves in a feeding frenzy knows that wolves don't like to share.

Humans have a long history of eradicating wolves, rather than trying to adopt them. Over the last few centuries, almost every culture has hunted wolves to extinction. The first written record of the wolf's persecution was in the sixth century B.C. when Solon of Athens offered a bounty for every wolf killed. The last wolf was killed in England in the 16th century under the order of Henry VII. In Scotland, the forested landscape made wolves more difficult to kill. In response, the Scots burned the forests. North American wolves were not much better off. By 1930, there was not a wolf left in the 48 contiguous states of America.  (See "Wolf Wars.")

If this is a snapshot of our behavior toward wolves over the centuries, it presents one of the most perplexing problems: How was this misunderstood creature tolerated by humans long enough to evolve into the domestic dog?

The short version is that we often think of evolution as being the survival of the fittest, where the strong and the dominant survive and the soft and weak perish. But essentially, far from the survival of the leanest and meanest, the success of dogs comes down to survival of the friendliest.

Most likely, it was wolves that approached us, not the other way around, probably while they were scavenging around garbage dumps on the edge of human settlements. The wolves that were bold but aggressive would have been killed by humans, and so only the ones that were bold and friendly would have been tolerated.

Friendliness caused strange things to happen in the wolves. They started to look different. Domestication gave them splotchy coats, floppy ears, wagging tails. In only several generations, these friendly wolves would have become very distinctive from their more aggressive relatives. But the changes did not just affect their looks. Changes also happened to their psychology. These protodogs evolved the ability to read human gestures.

As dog owners, we take for granted that we can point to a ball or toy and our dog will bound off to get it. But the ability of dogs to read human gestures is remarkable. Even our closest relatives-chimpanzees and bonobos-can't read our gestures as readily as dogs can. Dogs are remarkably similar to human infants in the way they pay attention to us. This ability accounts for the extraordinary communication we have with our dogs. Some dogs are so attuned to their owners that they can read a gesture as subtle as a change in eye direction.

With this new ability, these protodogs were worth knowing. People who had dogs during a hunt would likely have had an advantage over those who didn't. Even today, tribes in Nicaragua depend on dogs to detect prey. Moose hunters in alpine regions bring home 56 percent more prey when they are accompanied by dogs. In the Congo, hunters believe they would starve without their dogs.

Dogs would also have served as a warning system, barking at hostile strangers from neighboring tribes. They could have defended their humans from predators.

And finally, though this is not a pleasant thought, when times were tough, dogs could have served as an emergency food supply. Thousands of years before refrigeration and with no crops to store, hunter-gatherers had no food reserves until the domestication of dogs. In tough times, dogs that were the least efficient hunters might have been sacrificed to save the group or the best hunting dogs. Once humans realized the usefulness of keeping dogs as an emergency food supply, it was not a huge jump to realize plants could be used in a similar way.

So, far from a benign human adopting a wolf puppy, it is more likely that a population of wolves adopted us. As the advantages of dog ownership became clear, we were as strongly affected by our relationship with them as they have been by their relationship with us. Dogs may even have been the catalyst for our civilization.

Dr. Brian Hare is the director of the Duke Canine Cognition Center and Vanessa Woods is a research scientist at Duke University. This essay is adapted from their new book, The Genius of Dogs, published by Dutton. To play science-based games to find the genius in your dog, visit www.dognition.com.

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Abandoned Baby's Tooth Used in Search for Parents

Authorities are using the bottom tooth of the week-old infant abandoned in a plastic bag outside an apartment complex in Cypress, Texas, as a clue in the search for her parents.

The newborn's early tooth, seen in just one of 2,000 births, is a unique genetic trait that may prove to be a link to her family history, according to investigators.

The baby, named Chloe by rescuers, weighed just four pounds when she was found by a woman walking her dogs near the apartment complex.

"More than likely her mother didn't have any type of prenatal care," Estella Olguin, spokeswoman for Texas Child Protective Services, told ABC's "Good Morning America."

To aid in their investigation, police commissioned Texas sketch artist Lori Gibson to create a rendering of what her parents might look like by studying the newborn's features.

Texas Cops Rely on Sketches in Abandoned Baby Case Watch Video

RELATED: Cops Rely on Sketch to Find Abandoned Baby's Parents

"The people would recognize that smile," Gibson told "Good Morning America," "It's a ready smile, and then all I had to do was put teeth."

Authorities said they are hoping Chloe's mother or other relatives come forward to claim the baby, or officially allow another family to take custody of the newborn. They plan to charge the parents if they can find them, police said.

Texas has an infant safe haven law, which allows mothers to anonymously give up their babies to designated locations where they can receive care until they are placed in a permanent home.

Texas was the first state to enact an infant safe haven law, which was passed in 1999. The laws, now adopted by many other states and known as "Baby Moses laws," are meant to provide mothers with an incentive not to abandon unwanted children, according to the U.S. Department of Health and Human Services.

Meanwhile, Harris County Sheriff's Department spokeswoman Christina Garza said once custody issues are resolved, "[Chloe] will be placed in a loving home."

"There is no shortage of people who want her," she said.

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SpaceX "optimistic" after space capsule mishap

WASHINGTON: SpaceX said it was "optimistic" Friday after a thruster outage delayed the latest resupply mission of its unmanned Dragon capsule en route to the International Space Station.

SpaceX and NASA officials said the cargo resupply mission was still on track, but the technical mishap could fuel concerns about the US agency's ambitious plans to cut costs by privatizing elements of the space program.

SpaceX's billionaire founder Elon Musk said the failure of three out of four thruster pods to fire up was a "little frightening" but that two pods were back online within a few hours and the others should be working again shortly.

"I'm optimistic that we will be able to turn all four thruster pods on and restore full control," he told reporters.

Musk later tweeted: "Thruster pods one through four are now operating nominally. Preparing to raise orbit. All systems green."

SpaceX and NASA officials said once the pods are back online, they would carry out a number of checks before clearing the vessel to dock at the space station in the coming days, perhaps as early as Sunday.

The original rendezvous had been planned for 1130 GMT Saturday, but Mike Suffredini, NASA program manager for the International Space Station, said there was "quite a bit of flexibility" in the berthing date.

He also praised the handling of the mishap, saying "it was a pleasure to watch the SpaceX team in action" as they worked through "anomalies."

The malfunction occurred shortly after the capsule achieved orbit and separated from the Falcon 9 rocket after a near-perfect launch earlier in the day from Cape Canaveral, Florida.

Musk said it was unclear what caused the problem, but suggested a valve leading to the oxidation tanks may have been blocked.

"I don't think it's a major concern. This is the first time we've seen this type of issue," he said. "I think it's an anomaly."

The Dragon vehicle is carrying 1,200 pounds (544 kilograms) of supplies on the firm's second resupply mission to the ISS. The two missions were preceded by a nearly flawless test flight.

The first resupply mission in October was a milestone in US efforts to cut costs by privatizing space exploration. The current mission is the second of 12 planned trips in NASA's $1.6 billion contract with SpaceX.

"This unique vehicle has become a very integral part of how we operate and use the space station," Suffredini said on Thursday, as he described plans for the 25-day mission.

The cargo includes equipment for 160 experiments to be conducted by the space station crew, which currently consists of two Americans, three Russians and a Canadian.

On the return flight, Dragon -- the only spacecraft able to bring cargo back to Earth for now -- will be loaded with just over a ton of materials, including results of medical research.

Before the thruster outage, the capsule had been scheduled for a splashdown landing off the coast of California on March 25.

NASA has bet on SpaceX and other commercial ventures to take over for its retired fleet of space shuttles, which last flew in July 2011.

Before SpaceX's successful mission in October, NASA had been relying on Russian spacecraft -- but the Soyuz craft does not have room for cargo on the return flight.

SpaceX says it has 50 launches planned -- both NASA missions and commercial flights -- representing about $4 billion in contracts.

So far, SpaceX has only sent unmanned flights into orbit, but the company aims to send a manned flight within the next three or four years. It is under a separate contract with NASA to refine the capsule so that it can carry a crew.

NASA also has a $1.9 billion resupply contract for the station with Orbital Sciences Corporation, which will launch the first test flight of its Antares rocket from a base in Virginia in the coming weeks.

-AFP/ac

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Tourism ministry seeks VoA facility for 16 more countries

NEW DELHI: Tourism ministry has sought greater travel flexibility by proposing visa-on-arrival (VoA) facilities in 16 more countries. Tourism minister K Chiranjeevi met home minister Sushilkumar Shinde for extension of services to countries like Germany, France, Brazil, South Africa, Russia and other CIS countries.

"The extension VoA facilities for tourists to the countries is important as we feel that these are potential source markets to India," said a senior ministry official.

Consistent with the Look East policy, tourism ministry has included Thailand, Malaysia and Brunei in the proposed VoA list.

Keeping an eye on the emerging market of CIS countries, the ministry has sought the extension of the VoA facility for Russia, Ukraine, Uzbekistan and Kazakhstan. The other countries proposed for the extension of the facility are Spain, Poland, Sweden, Norway, Brazil, Trinidad & Tobago.

Now, the VoA facilities are available for tourists from 11 countries, including Singapore, New Zealand, Japan, Vietnam, Indonesia, Myanmar and the Philippines. There were 16,084 foreign tourists, who had availed the VoA facility last year, as against 12,761 in 2011.

VoA is an attraction for potential tourists in key markets and at times also helps in tapping people who make decisions at the last moment.

An independent study conducted by the Indian Institute of Tourism and Travel Management ( IITTM) has noted that the VoA scheme has a significant and positive impact on the decision to travel to India, and it should be expanded to cover more countries and more ports of entry.

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Stinkbug Threat Has Farmers Worried

Part of our weekly "In Focus" series—stepping back, looking closer.

Maryland farmer Nathan Milburn recalls his first encounter.

It was before dawn one morning in summer 2010, and he was at a gas station near his farm, fueling up for the day. Glancing at the light above the pump, something caught his eye.

"Thousands of something," Milburn remembers.

Though he'd never actually seen a brown marmorated stinkbug, Milburn knew exactly what he was looking at. He'd heard the stories.

This was a swarm of them—the invasive bugs from Asia that had been devouring local crops.

"My heart sank to my stomach," Milburn says.

Nearly three years later, the Asian stinkbug, commonly called the brown marmorated stinkbug, has become a serious threat to many mid-Atlantic farmers' livelihoods.

The bugs have also become a nuisance to many Americans who simply have warm homes—favored retreats of the bugs during cold months, when they go into a dormant state known as overwintering.

The worst summer for the bugs so far in the U.S. was 2010, but 2013 could be shaping up to be another bad year. Scientists estimate that 60 percent more stinkbugs are hunkered down indoors and in the natural landscape now than they were at this time last year in the mid-Atlantic region.

Once temperatures begin to rise, they'll head outside in search of mates and food. This is what farmers are dreading, as the Asian stinkbug is notorious for gorging on more than a half dozen North American crops, from peaches to peppers.

Intruder Alert

The first stinkbugs probably arrived in the U.S. by hitching a ride with a shipment of imported products from Asia in the late 1990s. Not long after that, they were spotted in Allentown, Pennsylvania. Since then, they've been identified in 39 other states. Effective monitoring tools are being developed to help researchers detect regional patterns.

There are two main reasons to fear this invader, whose popular name comes from the pungent odor it releases when squashed. It can be distinguished from the native stinkbug by white stripes on its antennae and a mottled appearance on its abdomen. (The native stinkbug can also cause damage but its population number is too low for it to have a significant impact.)

For one thing, Asian stinkbugs have an insatiable appetite for fruits and vegetables, latching onto them with a needlelike probe before breaking down their flesh and sucking out juice until all that's left is a mangled mess.

Peaches, apples, peppers, soybeans, tomatoes, and grapes are among their favorite crops, said Tracy Leskey, a research entomologist leading a USDA-funded team dedicated to stinkbug management. She adds that in 2010, the insects caused $37 million in damage just to apple crops in the mid-Atlantic region.

Another fear factor: Although the stinkbug has some natural predators in the U.S., those predators can't keep up with the size of the stinkbug population, giving it the almost completely unchecked freedom to eat, reproduce, and flourish.

Almost completely unchecked. Leskey and her team have found that stinkbugs are attracted to blue, black, and white light, and to certain pheromones. Pheromone lures have been used with some success in stinkbug traps, but the method hasn't yet been evaluated for catching the bugs in large numbers.

So Milburn—who is on the stakeholders' advisory panel of Leskey's USDA-funded team—and other farmers have had to resort to using some chemical agents to protect against stinkbug sabotage.

It's a solution that Milburn isn't happy about. "We have to be careful—this is people's food. My family eats our apples, too," he says. "We have to engage and defeat with an environmentally safe and economically feasible solution."

Damage Control

Research Entomologist Kim Hoelmer agrees but knows that foregoing pesticides in the face of the stinkbug threat is easier said than done.

Hoelmer works on the USDA stinkbug management team's biological control program. For the past eight years, he's been monitoring the spread of the brown marmorated stinkbug with an eye toward containing it.

"We first looked to see if native natural enemies were going to provide sufficient levels of control," he says. "Once we decided that wasn't going to happen, we began to evaluate Asian natural enemies to help out."

Enter Trissolcus, a tiny, parasitic wasp from Asia that thrives on destroying brown marmorated stinkbugs and in its natural habitat has kept them from becoming the extreme pests they are in the U.S.

When a female wasp happens upon a cluster of stinkbug eggs, she will lay her own eggs inside them. As the larval wasp develops, it feeds on its host—the stinkbug egg—until there's nothing left. Most insects have natural enemies that prey upon or parasitize them in this way, said Hoelmer, calling it "part of the balance of nature."

In a quarantine lab in Newark, Delaware, Hoelmer has been evaluating the pros and cons of allowing Trissolcus out into the open in the U.S. It's certainly a cost-effective approach.

"Once introduced, the wasps will spread and reproduce all by themselves without the need to continually reintroduce them," he says.

And these wasps will not hurt humans. "Entomologists already know from extensive research worldwide that Trissolcus wasps only attack and develop in stinkbug eggs," Hoelmer says. "There is no possibility of them biting or stinging animals or humans or feeding on plants or otherwise becoming a pest themselves."

But there is a potential downside: the chance the wasp could go after one or more of North America's native stinkbugs and other insects.

"We do not want to cause harm to nontarget species," Hoelmer says. "That's why the host range of the Asian Trissolcus is being studied in the Newark laboratory before a request is made to release it."

Ultimately, the USDA's Animal and Plant Health Inspection Service will decide whether or not to introduce the wasp. If it does, the new natural enemy could be let loose as early as next year.

Do you have stinkbugs in your area? Have they invaded your home this winter? Or your garden last summer? How do you combat them? Share your sightings and stories in the comments.

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Sequester Begins But Govt. Shutdown Looks Unlikely

Mar 1, 2013 4:13pm

Andrew Harrer/Bloomberg/Getty Imag

It may not be readily obvious from the blizzard of news out there today on the “sequester,” but a government shutdown became significantly less likely today, even as the automatic budget cuts barreled ahead toward reality.

What happened? Both sides – Republicans and Democrats – basically seem to have agreed that as they will continue to fight out the $85 billion in automatic budget cuts starting to take effect today, they will not allow that disagreement to jeopardize full funding for the federal government. That funding is now scheduled to expire March 27.

RELATED: President Obama, Congressional Leaders Fail to Avert Sequester Cuts

After the White House meeting this morning, House Speaker John Boehner said he would have the House vote next week to fund the full government – what’s known as a “continuing resolution.”

Boehner: “I did lay out that the House is going to move a continuing resolution next week to fund the government past March 27th, and I’m hopeful that we won’t have to deal with the threat of a government shutdown while we’re dealing with the sequester at the same time. The House will act next week, and I hope the Senate will follow suit.”

READ MORE: 6 Questions (and Answers) About the Sequester

Boehner’s office provided this read-out of the meeting: “The president and leaders agreed legislation should be enacted this month to prevent a government shutdown while we continue to work on a solution to replace the president’s sequester.”

The president was asked at his mini-news conference whether he would definitely sign such a bill, even if it keeps government going at the new, lower spending levels as this fight is resolved (or not).

RELATED: 57 Terrible Consequences of the Sequester

Obama’s response: “With respect to the budget and keeping the government open – I’ll try for our viewing audience to make sure that we’re not talking in Washington gobbledygook. What’s called the continuing resolution, which is essentially just an extension of last year’s budget into this year’s budget to make sure that basic government functions continue, I think it’s the right thing to do to make sure that we don’t have a government shutdown. And that’s preventable.”

So even as we moved toward the brink of sequester, the nation’s leaders took a step back from another, much larger cliff.

SHOWS: World News

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Groupon CEO "fired" after losses, stock slump

NEW YORK: Groupon said Thursday it was replacing chief executive Andrew Mason, who said he was "fired," following the struggling daily deals firm's share price plunge of 24 percent after bad quarterly results.

The company said executive chairman Eric Lefkofsky and vice chairman Ted Leonsis would take over the post of chief executive, effective immediately and that Groupon "will continue to invest in growth."

The board thanked Mason, a founder of Groupon, and said it has begun a search for a new chief executive.

"Andrew helped invent the daily deals space, leading Groupon to become one of the fastest growing companies in history," said Lefkofsky.

Leonsis said: "Groupon will continue to invest in growth, and we are confident that with our deep management team and market-leading position, the company is well positioned for the future."

Mason, in a letter to employees, said he was "fired" but remained upbeat about the company.

"I love Groupon, and I'm terribly proud of what we've created," Mason said.

"I'm OK with having failed at this part of the journey. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through."

Sentiment has been souring on Groupon, which made a splash with its 2011 stock market debut but has been dogged by fears of "deal fatigue," and worries about its profitability as well as accounting questions.

"We believe uncertainties with Groupon remain due to staff turnover, competition, and increased investments," said a note earlier Thursday from Edward Woo at Ascendiant Capital Markets.

"In our view, the slowing growth and weak margins are likely to bolster continued skepticism as to Groupon's valuation, growth prospects, and profit potential."

Groupon's shares slumped to $4.53 at Thursday's close, a 77 percent drop from its public offering price of $20 in November 2011.

Scott Devitt at Morgan Stanley said Groupon's mission appears muddled now that it has moved into new services such as direct sales to consumers, and not just coupons for discounts with merchants.

"We continue to believe Groupon is a local ecommerce leader. However, we remain on the sidelines as the company experiments with myriad operating levers and strategies," the analyst said.

"We would become more constructive on the stock if we could better understand Groupon's ability to integrate the product companies it has acquired with the internally developed projects.

The Chicago-based firm reported a loss of $81 million in the fourth quarter, and a $67 million dollar deficit for the full year.

The loss translated to 12 cents per share in the quarter, compared with expectations of a profit of three cents a share.

With the daily deals sector fading fast, Groupon also offered a weak revenue outlook of $560 million to $610 million, well below market expectations of $650 million.

Groupon shares were listed on the Nasdaq in 2011 in a blockbuster public offering that raised a whopping $700 million and triggered fears that investors were overvaluing hot Internet startups.

The troubles at Groupon come amid ongoing woes at number two sector member LivingSocial, also losing money.

- AFP/ac

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