Twitter CEO Dick Costolo resigning, co-founder Jack Dorsey named interim CEO

Twitter CEO Dick Costolo resigning, co-founder Jack Dorsey named interim CEO

Twitter has announced that its Chief Executive Officer (CEO) Dick Costolo has chosen to resign on July 1. As a result of the resignation, Twitter’s Board of Directors has named co-founder Jack Dorsey as the interim CEO.

51-year-old Costolo will continue to serve on Twitter’s Board of Directors. The Board has formed a Search Committee to lead the search for a permanent CEO, which is chaired by the Board’s Lead Independent Director Peter Currie. Meanwhile, Dorsey will join as the interim CEO alongside serving as the CEO of payments and financial services company Square that was co-founded by him in 2009.

On announcing the departure through a statement to investors, Costolo said:

“I am tremendously proud of Twitter team and all that the team has accomplished together during my six years with the Company. We have great leaders who work well together and a clear strategy that informs our objectives and priorities. There is no better than Jack Dorsey to lead Twitter during this transition. He has a profound understanding of the product and Twitter’s mission in the world as well as a great relationship with Twitter’s leadership team. I am deeply appreciative of the confidence the Board, the management team and the employees have placed in me over the years, and I look forward to supporting Twitter however I can going forward.”

Twitter hosted an investor conference call following the announcement to clarify on the new development. During the call, Costolo said that he initiated internal conversations about his departure at the end of last year. He also mentioned that as he volunteered to step down, he isn’t receiving a severance package.

Commenting on the new move, Dorsey said:

“The future belongs to Twitter thanks in large part to Dick Costolo’s dedication and vision. Dick has put a world-class team in place and created a great foundation from which Twitter can continue to change the world and grow. We have an exciting lineup of products and initiatives coming to market, and I look forward to continuing to execute our strategy while helping facilitate a smooth transition as the Board conducts its search.”

The transition got a position response from the stock market as Twitter shares rose 3.6 percent to $37.17 soon after the announcement.

Costolo joined Twitter as COO in 2009 and took over as CEO from Evan Williams in October 2010. He was one of the top tech executives who visited India to meet Prime Minister Narendra Modi earlier this year.

Under the five-year leadership by Costolo, Twitter’s valuation raised from merely $3 billion to $23 billion. The company, which is known for its microblogging network, also became a public company and has a user base of 302 million monthly active users that resulted quarterly revenue generation of $436 million in the last quarter.

Featured Image Credit: Wikimedia

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