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Twitter CEO Jack Dorsey resigns

Twitter CEO Jack Dorsey has resigned from the company, and CTO Parag Agrawal has replaced him as CEO and went into effect immediately. CNBC First reported on Dorsey’s departure.

“We believe the company is ready for the transition from its founder, so we decided to quit Twitter,” Dorsey said in a statement. “My confidence in Parag as Twitter CEO is deep. His work over the last decade has revolutionized. I am deeply grateful for his skills, heart and soul. It’s time for him to lead. Dorsey will stay on Twitter’s board for the next six months to help with the transition before leaving the company altogether.

“I want everyone to know that this is my decision and I own it,” Dorsey told Twitter staff by email (he tweeted). “Of course it was hard for me. I love this service and company and you very much. I’m really sad but really happy. Not many companies reach this level and I am there. Not many founders choose their company over their ego. I think we can prove that this was the right move. “

“I would like to thank the Board for confidence in my leadership and Jack for providing ongoing mentorship, support and partnership,” Agrawar said. “We look forward to further developing everything we have achieved under Jack’s leadership. We are very excited about the opportunities ahead. By continuing to improve our practices, we are rebuilding the future of public conversation. , Providing great value to our customers and shareholders.

For the past six years, Dorsey has been in a rare situation of running two prominent tech companies, Twitter and Square. His first mission as co-founded Twitter CEO ended when he was kicked out in 2008, but he was still on the board. He returned as CEO in 2015 when Dick Kostro left.

Last year, activist investment firm Elliott Management called on Dorsey to leave her Twitter position. The company’s founder, Paul Singer, suggested that Dorsey’s dual CEO role meant he couldn’t focus enough on the social media platform. Twitter agrees with Elliott Management, including a $ 2 billion share buyback, to maintain Dorsey, despite the company’s volatile outlook when the COVID-19 pandemic began to take hold Has been reached.

Twitter missed Wall Street’s expectations for earnings and earnings per share in the previous quarter. Monetizable daily active users (mDAU), a key engagement indicator, increased 13% year-on-year to 211 million. However, the average mDAU in the United States remained at 37 million for the second consecutive quarter. In September, the company agreed to pay $ 809.5 million to settle a class action lawsuit. In the proceedings, investors accused the company of providing misleading figures about engagement.

Advertising remains the biggest driver of Twitter’s revenue ($ 1.14 billion of the $ 1.28 billion generated in the previous quarter), but the company has been making money in other ways over the past two years. Twitter purchased the newsletter service Revue in January and integrated it into its core Twitter platform. Users can request readers to read the newsletter, reducing Twitter by 5 percent.

Recently, the company unveiled Twitter Blue, a $ 3 / month service for power users that originally adds features such as buttons, bookmark folders, and ways to make threads easier to read.

Agrawal has been appointed CEO and joined Twitter’s board of directors. In addition, Salesforce President and Chief Operating Officer Bret Taylor has been appointed as the Independent Chair of the Board to replace Patrick Pichette, a member of the Board.

Update 11/29 10:45 AM ET: Updated with confirmation.

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