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HomeNewsIndian-Origin Parag Agrawal To Replace Jack Dorsey As Twitter CEO

Indian-Origin Parag Agrawal To Replace Jack Dorsey As Twitter CEO

Indian-Origin Parag Agrawal To Replace Jack Dorsey As Twitter CEO

Jack Dorsey, 45, can also be the pinnacle of funds firm Sq. Inc. (File)

Jack Dorsey, the co-founder and chief govt officer of Twitter Inc., is stepping down, ceding the place to the corporate’s Chief Know-how Officer Parag Agrawal.

The transfer is efficient instantly, although Dorsey will keep on the board of the social media firm till his time period expires in 2022, Twitter mentioned in an announcement Monday.

“I’ve determined to go away Twitter as a result of I imagine the corporate is able to transfer on from its founders,” Dorsey mentioned within the assertion. “My belief in Parag as Twitter’s CEO is deep. His work over the previous 10 years has been transformational. I am deeply grateful for his talent, coronary heart, and soul. It is his time to guide.”

Dorsey, 45, can also be the pinnacle of funds firm Sq. Inc. and has been taking an rising curiosity in cryptocurrencies just lately. Dorsey stepped down as CEO of Twitter in 2008, however returned to the corporate in 2015.

In 2020, Dorsey got here underneath stress from activist investor Elliott Administration Corp. over how he was spending his time. A yr earlier, he had additionally mentioned he deliberate to spend as much as six months of the yr working in Africa to higher perceive the continent’s web customers, a transfer that was finally scrapped on account of Covid 19. The hedge fund reached an settlement with Twitter and personal fairness group Silver Lake to nominate three new administrators to Twitter’s board and create a committee to overview its management and governance. Agrawal, who turned chief know-how officer in 2017, will change into a member of the board.


Firm’s Chief Know-how Officer Parag Agrawal would be the new CEO

The deal got here at a price, although: Twitter needed to develop its monetized day by day customers by 20% or extra and increase income development. Dorsey might lose his place if these targets weren’t met, Bloomberg reported.

CNBC reported the information earlier Monday, with out offering every other particulars. Twitter could not instantly be reached for remark.

Twitter shares jumped 3.4% at 10:50 a.m. in New York. In an unusually bubbly tech fairness market, Twitter has lagged behind its friends, with its shares slumping virtually 10% this yr, whereas Meta Platforms Inc., previously Fb, has risen 23%. 

“The headline takeaway right here is Twitter’s execution,” mentioned Mandeep Singh, an analyst at Bloomberg Intelligence. “If you evaluate Twitter to all the opposite social media platforms, the extent of engagement they’d, they by no means had been capable of monetize it in addition to some” different rivals. “Buyers acknowledge having one man be the CEO of two firms wasn’t very efficient when it comes to execution.”

Dorsey has additionally overseen the corporate when it confronted widespread stress from politicians and activists to take a extra proactive function in moderating hate speech, misinformation and different types of objectionable content material from political leaders. Dorsey took a stronger line than his social-media friends throughout Donald Trump’s presidency, banning the previous president from Twitter and telling Congress that he takes some duty for on-line organizing that led to the Jan. 6 riot at Capitol Hill. The corporate additionally just lately launched a program to crowd supply fact-checking misinformation.

Dorsey has been on the helm of Twitter because it experimented with new improvements in social media together with most just lately dwell audio merchandise and subscription companies. In June, the corporate unveiled Twitter Blue, a long-awaited subscription service that may permit customers to rescind tweets and set up their posts. It is also launched Twitter Areas, a dwell audio chat service that had been meant to compete with up-and coming upstart Clubhouse.

In current months, Twitter stepped up its tempo of acquisitions after years of languid deal-making, as the corporate made a renewed effort to extend the addition of latest options. In Could the corporate bought the information reader service Scroll. 

However the firm additionally confronted market pressures from youthful rivals together with TikTok and Snapchat which has massive audiences among the many youngest age cohorts with short-form video merchandise.

Twitter mentioned earlier this yr it desires to double its annual income to $7.5 billion by 2023, and expects to extend its person base by a median of just about 20% in every of the following three years, in response to a regulatory submitting.

Within the third quarter, Twitter mentioned it had 211 million day by day customers, 5 million greater than the earlier interval and a 13% enhance from a yr earlier. The social media service attributed the expansion to “ongoing product enhancements and international conversations round present occasions.”

Dorsey has a web value of $12.3 billion, with Sq. accounting for greater than $10 billion of that quantity. He is publicly pledged a lot of his stake in Sq. to charitable causes, in response to knowledge compiled by Bloomberg.

(Apart from the headline, this story has not been edited by BoardingFlight workers and is revealed from a syndicated feed.)


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