Dick Costolo Steps Down As Twitter's CEO, Shares Up 3%
Twitter's CEO has stepped down from the post and Jack Dorsey has been the interim CEO while the company searches for the CEO.
Latest Twitter news is regarding the CEO Dick Costolo who has chosen to step down from the post of CEO from July 1. There has been a user-growth struggle that has been experienced by the social network and that might be the reason for this action. However, Costolo shall remain on the board. The co-founder of Twitter and the CEO of Square, Jack Dorsey shall be the interim CEO. The investors are going to be on the conference call today in order to discuss this situation.
The stock market had responded in favor to the change with the share price up 7 percent for the social network giant, however now the share price has been declined to 3 percent up one. This is after the stock plunged 18 percent 1 and a half month ago following the miss on earnings in Q1. Since the previous quarter, there had been only 4.86 percent growth in users in order to bring the social network to 302 million users.
Costolo expressed that he had been thinking of stepping down from the position and had initiated the conversations internally since the last year. That resulted in the company beginning the search for the CEO. Twitter news reports that Costolo decided to step down now because the scrutiny for CEO search might intensify in the presence of him being CEO. It is said in Q&A session that since Costolo went voluntarily, there shall be no package of severance.
Dorsey had been announced as the interim CEO for the social network who is not only the CEO of Square but also the co-founder of the social network itself. In this time, he will be serving as the CEO for Square as well. He had been the CEO before being forced to step down and being replaced by Ev Williams back in 2008. He became the executive chairman for the company then when Costolo became the CEO in 2011.
The search committee established for CEO search is chaired by Peter Currie who is the Lead Independent Director for Twitter Board. There had been rumors that Adam Bain, the head for partnerships and revenue might replace Costolo. However, it has also been said that Anthony Noto who is the CFO might be the big bird for the position.
There has been a lot of pressure on Twitter to get the leadership and product straightened out and it has also been intensified with time. Chris Sacca had suggested a lot of things and also pointed out at a lot of aspects in his 8,000 word essay last week. Sacca is said to be the biggest investors for the company.
