Just 12 hours after co-founder Biz Stone claimed Twitter executives laughed at investor pleas for a change in management, CEO Dick Costolo has announced his resignation.
Costolo will leave the company on 1 July, following a large amount of criticism thrown at Twitter’s lack of revenue and product growth in the past two years.
Original CEO and co-founder Jack Dorsey will step in as interim CEO, while Twitter looks for a new chief executive to run the company. Stock was up eight per cent following the news of Costolo’s resignation.
When co-founder Ev Williams moved away from Twitter, it was said Costolo wanted to focus more on the business than the product. Sadly, in the past two years, the business has not shown any major profitability or revenues anywhere close to Google or Facebook.
For investors that bought stock on Twitter’s IPO, the price has not increased after 24 months. Chris Sacca, a long time investor, said it was time for major change: product redesign with a friendly interface and potentially a buyout from Google.
Peter Currie, Peter Fenton and Ev Williams will lead the search for a new CEO. Dorsey will continue as interim for a few months, although he seems to be focused on Square, the mobile payments company.
Twitter’s chief financial officer has been hinted as possible replacement for Costolo, although a large majority of people want a female as the head of the microblogging service to diversify the executive team.
Sheryl Sandberg is on the list of candidates, the chief operational officer for Facebook, said to be the core part of the day-to-day at the social giant. Twitter might look towards one of the co-founders if it cannot find a preferable candidate.