Dick Costolo, Chief Executive Officer of Twitter, has announced that he will resign from his post on July 1. Co-founder Jack Dorsey will replace Dick Costolo on a temporary basis.
Co-founders Jack Dorsey and Evan Williams served as CEOs of the Twitter before Costolo. Nate Elliott, Forrester Research Analyst, said that the news is not surprising. At present, Twitter is not good at serving its marketers or users.
Costolo said that the company will consider external as well as internal candidates for its next CEO. He was proud of his six years at Twitter.
Dorsey said that he was not thinking about staying CEO forever because the search has just started but did not rule out the job. He said that he did not expect any change in the direction or strategy of the company.
While the CEO search has not started, Twitter was looking for a CEO who uses Twitter daily and likes the product. Dorsey had served as president and CEO of Twitter from May 2007 to October 2008.
After the announcement, the shares of Twitter rose to $37.17,The Irish Times reported. This means that investors thought that the company was $900 million more without Dick Costolo than with him.
Twitter said that Costolo will step down on July 1 and will continue to serve on the board,
According to The New York Times, Costolo's exit is likely to resume speculation that the microblogging platform Twitter is an acquisition target for software giants that could afford the company. At present, Twitter has a market valuation of $24 billion. Rumors are also doing the rounds that the software company Google is eyeing Twitter. However, this has yet to be confirmed.