So it’s official. Dick Costolo will step down as chief executive of Twitter. He will however, remain on the company’s board of directors.
Until then, the social media giant will be headed by Jack Dorsey, a cofounder of Twitter, acting as an interim replacement. In addition, he will also continue to work as chief executive of payment company Square, according to a statement from Twitter. The change will be effective from 1s July 2015
Former chief executive and co-founder Evan Williams is also part of the team tasked with finding a CEO for a company that has 302 million monthly active users and 3,900 employees (so no pressure at all).
Jack asserted that the transition was just Dick making his choice to move on from his role as CEO. Although this does tend to contrast with the recent narrative of Dick’s run as CEO, which has gathered quite a bit of criticism from investors the likes of Chris Sacca over its direction and short-term performance.
The stock market was rather happy though as Twitter stock was up almost 8 percent in after-hours trading just after Twitter made the announcement.
For Twitter, this is quite a boon as they had been in the crossfire with regard to its ability to expand its user base and also with regard to generating more revenue.
The company posted a total of $436 Million in revenue, for the quarter, a full $20 million short of what analysts had expected for the first quarter of this year. Just after that, Twitter stock dropped by 19 percent (ouch).
At the Code Conference held in last month, Costolo was asked if he would be stepping down, which was deflected with a reply that he had the full support of the Twitter board of directors.
Twitter is also holding a conference call at 2:15pm (PST) to talk about the changes and future plans. The hashtag for the topic: #TWTRannouncement.