Dick Costolo resigns as CEO of Twitter, co-founder Jack Dorsey named Interim CEO
Well, if you have an account on Twitter this will not be news, it’s all over Twitter: CEO Dick Costolo is stepping down as CEO of the social media company. Jack Dorsey, Co-Founder and Chairman of the Board will serve as Interim CEO.
Dorsey came up with the idea while an undergraduate student at New York University and unveiled the first version in 2006, used as an internal service for employees of the podcasting company Odeo. In 2007 Twitter became its own company.Evan Williams, now known as the founder of Medium, served as CEO before Costolo became CEO in 2010.
Coastal had worked at Andersen Consulting for 8 years, then founded Feedburner which was bought by Google. It was this background that no doubt was attractive to Twitter. He left Google in 2009 and that September joined Twitter as COO.
Costolo is a grad of the University of Michigan and is originally from Royal Oak (near my own hometown).
The reason for Costolo’s departure is not known, but investors seemed to like the news, driving the stock up over 6 percent in after market trading.
Here is Twitter’s announcement:
SAN FRANCISCO, Calif. – June 11, 2015 – Twitter, Inc. today announced that Dick Costolo has decided to step down as Chief Executive Officer of Twitter, effective July 1, 2015. Twitter’s Board of Directors has named Jack Dorsey, Co-Founder and Chairman of the Board, to serve as Interim CEO while the Board conducts a search for Twitter’s next CEO. Costolo will continue to serve on Twitter’s Board of Directors, and Dorsey will continue to serve as CEO of Square, Inc., the payments and financial services company he co-founded in 2009.
Twitter’s Board has formed a Search Committee to lead the search for a permanent CEO. The Search Committee is chaired by the Board’s Lead Independent Director, Peter Currie, and includes Peter Fenton and Evan Williams. The Committee will retain a leading executive search firm to assist in conducting a global search, which will consider both internal and external candidates for the CEO position.
Costolo said, “I am tremendously proud of the Twitter team and all that the team has accomplished together during my six years with the Company. We have great leaders who work well together and a clear strategy that informs our objectives and priorities. There is no one better than Jack Dorsey to lead Twitter during this transition. He has a profound understanding of the product and Twitter’s mission in the world as well as a great relationship with Twitter’s leadership team. I am deeply appreciative of the confidence the Board, the management team and the employees have placed in me over the years, and I look forward to supporting Twitter however I can going forward.”
Dorsey said, “The future belongs to Twitter thanks in large part to Dick Costolo’s dedication and vision. Dick has put a world-class team in place and created a great foundation from which Twitter can continue to change the world and grow. We have an exciting lineup of products and initiatives coming to market, and I look forward to continuing to execute our strategy while helping facilitate a smooth transition as the Board conducts its search.”
Dorsey continued, “I am grateful for the talented team at Square, which I will continue to lead. We have built a very strong company from top to bottom, and I am as committed as ever to its continued success.”
Currie said, “On behalf of the Board, I want to thank Dick for his years of tireless devotion to building Twitter into the strong and dynamic company it is today, putting us in a superb position for continued growth and innovation for many years to come. We look forward to his continued contributions during the transition period and as an ongoing member of the Board. The Board is fully committed to running a thorough process to identify the right CEO to lead Twitter into its next phase of growth. In the meantime, we are fortunate to have Jack – one of our founders – step back into a management role and help lead Twitter as we continue executing on our strategic priorities.”
Second Quarter 2015 Outlook
Twitter also today reaffirmed its outlook for the second quarter of 2015. The Company continues to expect revenue to be in the range of $470 million to $485 million and adjusted EBITDA to be in the range of $97 million to $102 million. Stock-based compensation expense is expected to be in the range of $190 million to $200 million, excluding the impact of equity awards that may be granted in connection with potential future acquisitions.