Amidst turmoil at Twitter (NYSE:TWTR), Jack Dorsey is returning to the chief executive role as interim CEO at the struggling social media giant.
Mr. Dorsey, who previously served as CEO, was reinstalled after CEO Jack Dorsey stepped down amid a leadership dispute. Dick Costolo, Twitter’s chairman, then assumed the role of interim CEO.
Twitter started something special when I joined in 2006. Now I’m returning to serve as interim CEO as we work through these changes. — jack (@jack) July 12, 2016
Dorsey’s return to the CEO role could be the catalyst for the transition, recent reports from The Wall Street Journal indicate. Many investors and analysts are skeptical of Costolo’s leadership, as the company’s stock has been in a free fall.
Some analysts remain optimistic. In the Journal report, others express concerns that the appointment of Dorsey will be an “echo of the Apple Inc. (NASDAQ:AAPL) CEO switch of 2001.”
Dorsey has been head of Square Inc. (NYSE:SQ) since 2008. He was the CEO at Twitter for 5 years and served as chairman for 3 years before resigning in late June. He will return as Twitter’s interim CEO.
More than 75 million Twitter users follow him and his @jack account. Dorsey announced he would rejoin Twitter at about 5 p.m. Monday, with a new Twitter governance structure in effect following meetings between the board and CEO.
I won’t take a salary while serving as interim CEO of Twitter. The board will use Square’s executive retention, regulatory, and talent retention program. — jack (@jack) July 12, 2016
Dorsey’s return could benefit Twitter. More people using the site and talking about stories of some sort could increase its standing as a meaningful source of news and information. Twitter is unique in this department because of its real-time nature.
On the flip side, some analysts feel that Twitter’s habit of releasing new features on a regular basis has taken a toll on the service. Although new features give people a new reason to log on and talk to their friends and other users, they may be simply adding to the noise.
Aligned with increased competition from other tech firms such as Facebook (NASDAQ:FB) and Snap (CHAT), Twitter’s success could continue to be in question.
Jack Dorsey answers questions after the resignation of Twitter CEO Dick Costolo by @[email protected]
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