According to CNBC’s David Faber, Twitter CEO Jack Dorsey is poised to stand down from his executive position.
The stocks of Twitter rose on the news before being suspended due to imminent news.
Dorsey, 45, is the current CEO of both Twitter and Square, his digital payments firm.
It’s unknown who will succeed Dorsey or when an announcement will be made. It’s also unclear why Dorsey, 45, would back off. If he walks down, though, the incoming CEO will have to satisfy Twitter’s lofty internal targets. The firm stated earlier this year that by the end of 2023, it expects to have 315 million monetizable daily active users and to more than double its annual income.
Last year, Dorsey was on the verge of being ousted when Twitter’s majority shareholder Elliott Management attempted to replace him. Before the investment firm reached an agreement with the company’s management, Elliott Management founder and billionaire investor Paul Singer questioned whether Dorsey should oversee both of the public firms, pushing on him to step down as CEO of one of them.
Dorsey, who founded the social media giant, served as CEO until 2008 before being pushed out of the role. He returned to Twitter as boss in 2015 after former CEO Dick Costolo stepped down.
Twitter did not respond to a request for comment.
Jack Dorsey to Twitter
After almost 16 years of having a role at our company…from co-founder to CEO to Chair to Exec Chair to interim-CEO to CEO…I decided it’s finally time for me to leave. Why?
There’s a lot of talk about the importance of a company being founder-led. ” Ultimately I believe that’s severely limiting and a single point of failure. I’ve worked hard to ensure this company can break away from its founding and founders. There are 3 reasons I believe now is the right time.
The first is Parag becoming our CEO. The board ran a rigorous process considering all options and unanimously appointed Parag. He’s been my choice for some time given how deeply he understands the company and its needs. Parag has been behind every critical decision that helped turn this company around. He’s curious, probing, rational, creative, demanding, self-aware, and humble. He leads with heart and soul, and is someone I learn from daily. My trust in him as our CEO is bone deep.
The second is Bret Taylor agreeing to become our board chair. I asked Bret to join our board when I became CEO, and he’s been excellent in every way. He understands entrepreneurship, taking risks, companies at massive scale, technology, product, and he’s an engineer. All of the things the board and the company deserve right now. Having Bret in this leadership role gives me a lot of confidence in the strength of our board going forward. You have no idea how happy this makes me!
The third is all of you. We have a lot of ambition and potential on this team. Consider this: Parag started here as an engineer who cared deeply about our work and now he’s our CEO (I also had a similar path…he did it better!). This alone makes me proud. I know that Parag will be able to channel this energy best because he’s lived it and knows what it takes. All of you have the potential to change the course of this company for the better. I believe this with all my heart!
Parag is CEO starting today. I’m going to serve on the board through rny term (May-ish) to help Parag and Bret with the transition. And after that…1’11 leave the board. Why not stay or become chair? I believe it’s really important to give Parag the space he needs to lead. And back to my previous point, I believe it’s critical a company can stand on its own, free of its founder’s influence or direction.
I want you all to know that this was my decision and I own it. It was a tough one for me, of course. I love this service and company…and all of you so much. I’m really sad…yet really happy. There aren’t many companies that get to this level. And there aren’t many founders that choose their company over their own ego. I know we’ll prove this was the right move.
We’ll have an all-hands meeting tomorrow at 9:05 AM Pacific to discuss it all. Until then, thank you all for the trust you’ve placed in me, and for the openness to build that trust in Parag and yourselves. I love you all.
PS I’m tweeting this email. My one wish is for Twitter Inc to be the most transparent company in the world. Hi mom!
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