Twitter CEO, Dick Costolo is going to resign. One of the original founders, Jack Dorsey is going to be the interim CEO. Costolo was criticized for the below average revenues and profitability targets. The user base of twitter has also declined. The new CEO will gain charge effective July 1.
Costolo’s incompetence in retaining users, attracting new users and creating innovative advertisements has been quite disappointing to Wall Street. Costolo’s resignation has restarted the assumptions that Twitter might be acquired by one of the tech giants. Google has been rumoured to acquire Twitter. But any deal between the two has been denied.
Tech experts say that replacing the CEO won’t do much good to Twitter. They need outside expertise to resolve their problems. The problems of Twitter are getting out of hand. Jack Dorsey might have an insight about the company. But what will truly help Twitter is to get an external view point.
Twitter’s user base this year is expected to grow by 14 percent. Dick Costolo stated that he is proud of his team and what they have accomplished over the years. Their objectives and priorities are specified and they work towards a clear cut strategy. The team has worked really hard and always thought innovatively to enhance user experience. He thinks that Jack Dorsey is the best option to head Twitter during this period of change.
The stress started building when an investor of twitter published an essay about how twitter could improve and achieve its goals. Twitter needs new things quickly. If it’s too slow competitors like Facebook would beat them to the innovations.
The management of Twitter has never been stable. There have always been ups and downs in Twitter when it came to the management. The previous year most of Costolo’s team was fired or they stepped down when Costolo wanted to speed up the process of improvements in the products. Six months ago Costolo announced to his board that they should start thinking about succession.
Dorsey is very much familiar with the company and its processes. Some people say that Dorsey always wanted to lead twitter and that wanted a more prominent position in Twitter.