Twitter Inc. CEO Jack Dorsey has resigned and will soon be replaced by longtime veteran social media company and more recently Chief Technology Officer Parag Agrawal.
After the company confirmed Dorsey’s resignation plan and revealed that Agrawal would take over that role, it rose 5.1% in trading on Monday morning.The news of Dorsey’s departure plan First reported by CNBC At the beginning of Monday, following the report, the share initially rose 11.1%.
“I decided to leave Twitter because I believe the company is ready to move on from the founder,” Dorsey said in a release. “My trust in Parag as Twitter CEO is deep.”
Dorsey will remain on Twitter’s board of directors until his term ends at the company’s 2022 shareholders’ meeting. Bret Taylor served as the new independent chairman of Twitter’s board of directors and unanimously appointed Agrawal to the post of CEO.
Dorsey used Twitter to share an email he wrote to announce his departure to employees. “I believe it’s really important to give Parag the space he needs to lead,” Dorsey said, explaining why he goes beyond the company’s board of directors.
Tim Hubbard, a professor of business administration at the University of Notre Dame’s Mendoza Business College, said: Statement by email.
After the CNBC report, it rose 4.0% at the beginning of Monday, but returned those rises and was recently 0.4% off. Dorsey is also the CEO of Square.
According to FactSet data, Twitter is drawing attention from activist investor Elliott Investment Management. Elliott Investment Management owns 1.25% of Twitter’s outstanding shares. Twitter in March 2020 Reached an agreement with Elliott Repurchase $ 2 billion of its shares in an arrangement partially funded by an investment from private equity firm Silver Lake.
At that time, Elliott Reportedly I was interested in seeing Dorsey leave his postHowever, on Twitter, in a November 2020 filing, the Board of Directors’ Management Structure Committee, led by an independent director, “evaluates the current management structure, new operating plans and implemented procedures,” and “current structure.” Is as it is. ”
As an S & P 500, Twitter’s share has declined by 22.3% in the last three months.
It is up 2.8%. Friday’s stock closed at its lowest in 10 months.
Twitter CEO Jack Dorsey resigns to replace CTO Parag Agrawal
http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-77A9-0D2CA0886C00%7D&siteid=rss&rss=1 Twitter CEO Jack Dorsey resigns to replace CTO Parag Agrawal