He expressed faith in the strategy Costolo has in place at Twitter and products in the company’s pipeline. He continues to act as CEO of Square.
Twitter shares jumped more than three percent to $37.16 in after-market trading that followed release of word Costolo is out as chief.
To take the company public in 2013, Costolo was criticized because he could not trigger growth and revenue source for the social media company.
Twitter’s CEO Dick Costolo resigned Thursday highlighting Wall Street complaints about the microblogging site’s sluggish advertising and new user growth. Twitter, with its 301 million monthly active users, pales in comparison to Facebook and its 1.44 billion. Defending Costolo, Dorsey on a conference call said his departure had nothing to do with the recent earnings report.
4- Cloudy future: Twitter has been called many things. Analysts said they had been expecting Costolo to depart sometime this year.
The choice of a temporary replacement for Costolo isn’t a surprise, either. “That being said, Jack has the moral authority to move the company forward”. “That’s where we are today”. The 51-year-old Costolo said he began talking with Twitter directors about leaving a year ago, although he did not say what he plans to do next.
The news comes after much scrutiny for the CEO, with Twitter stocks recently taking somewhat of a dive and the battle against online harassment becoming an increasingly important issue. He also mentioned that as he volunteered to step down, he isn’t receiving a severance package. The stock price of the company peaked to $69 per share on January 3, 2014 and declined to as low as $30.50 per share on May 23, 2014.
It was also reported that Costolo, who has been CEO for five years, won’t receive any compensation payoff.
Despite those gains, investors had grown disenchanted with Costolo as Twitter struggled to expand its user base beyond a hard-core group of fans. Costolo certainly brought Twitter to the realm of Real Revenue, with sales for the current quarter still predicted to come in between $470 million and $485 million.
“Unfortunately this news isn’t surprising“, said Nate Elliott of Forrester Research.
” “But on Twitter itself, the sentiment was more in keeping with Twitter Chief Financial Officer Anthony Noto’s reaction.”#forevergrateful to u for giving me a once in a lifetime opportunity to join you @Twitter”, he wrote.
Chris Sacca, one of Twitter’s earliest investors, posted an 8,500-word manifesto earlier this month calling on the company to better engage its users.
Looking for someone with the right qualities to lead the company is going to be a test, but one person believes he has what it takes to become the next CEO.
Twitter has some compelling ad opportunities like its deal with the NFL to tweet live game highlights and sell sponsorships to brands, and it’s in the moment and part of the conversation during every major TV event.
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