Jack Dorsey steps down as Twitter CEO, being replaced by CTO Parag Agrawal
Twitter Inc. co-founder and chief executive officer Jack Dorsey is retiring, leaving the position to company's Chief Technology Officer Parag Agrawal.
According to Twitter, The decision is effective immediately, though Dorsey will stay on the board of the social media firm until his term expires in 2022.
I've decided to leave Twitter because I believe the business is ready to move on from its founders, Dorsey added in the statement. My trust in Parag as Twitter's CEO has been huge. I'm deeply pleased for his talent, heart, and soul. It's his time to lead.
Dorsey, 45, is also the head of payments firm Square Inc. and has been raising a growing interest in cryptocurrencies since leaving Twitter in 2008, but returned to the business in 2015.
Dorsey faced pressure from activist investor Elliott Management Corp. over how he was spending his time in Africa in 2020, a move that was eventually scrapped due to Covid 19. The hedge fund reached an agreement with Twitter and private equity firm Silver Lake to appoint three new directors to Twitter's board and establish a committee to review its leadership and governance in 2020. Agrawal, who became chief technology officer in 2017, will become a member of the board.
However, the deal had to be costly: Twitter had to increase its monetized daily users by 20 percent or more and increase revenue growth. If Dorsey's goals weren't met, Bloomberg reported.
CNBC reported the news earlier Monday, without providing any other information. Twitter couldn't be reached immediately for comment, according to CNBC.
Twitter shares jumped 3.4 percent at 10:50 a.m. in New York, in an unusually shaky tech equity market, its shares fell almost ten percent this year, while Meta Platforms Inc., formerly Facebook, rose 23 percent.
The headline takeaway here is Twitter's execution, said Mandeep Singh, an analyst at Bloomberg Intelligence. When you compare Twitter to all other social media platforms, the level of engagement they had, they never were able to monetize it as well as some other rivals. Investors recognize having one man be the CEO of two firms was not very effective in terms of execution.
Dorsey has also overseen the firm when it faced widespread pressure from politicians and activists to take a more proactive approach to moderating hate speech, misinformation, and other forms of objectionable material from political leaders. During Donald Trump's presidency, Dorsey took a stronger line than his social-media peers, prohibiting the former president from Twitter and telling Congress that he takes responsibility for online organizing that led to the Jan. 6 riot at Capitol Hill. The firm also recently introduced a program to crowd source
Dorsey is at the heart of Twitter, which has launched Twitter Blue, a long-awaited subscription service that will allow users to rescind tweets and organize their posts. In June, the firm partnered with Twitter Spaces, a live audio chat service that were meant to compete with up-and-coming Clubhouse.
Twitter has increased its pace of acquisitions after years of languid agreement-making in recent months, as the company made a renewed effort to increase the inclusion of new features. In May, the news reader service Scroll was purchased by the corporation.
However, the business was under pressure from younger rivals like TikTok and Snapchat, which has crowded market share among the youngest age cohorts with short-form video products.
According to a regulatory filing, Twitter said earlier this year that it intends to increase its annual revenue to $7.5 billion by 2023 and expects to increase its user base by an average of about 20 percent in each of the next three years.
Twitter said it had 211 million daily users in the third quarter, up by 5 million over the preceding quarter and a 13 percent increase from a year earlier. The social media service attributed the increase to ongoing product improvements and global conversations around current events.
According to data compiled by Bloomberg, Dorsey has a net worth of $12.3 billion, with Square accounting for more than $10 billion. He's publicly pledged a large portion of his stake in Square to charitable causes.