Twitter, CEO Dick Costolo leaves the leadership of the social
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Loading... - CLAUDIA SPAGNUOLO
- 12 Jun 2020
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Resignation expectations for the CEO of the platform that, despite the huge popularity, can not generate revenues and grows too slowly. The ball back to one of the co-founders, Jack Dorsey.
Dick Costolo has resigned. Former aspiring comedian, former top manager of the group, rose in October 2010 at the head of Twitter, he has given up will no longer be the CEO of the social bird from July. The ball will be back in the hands of Jack Dorsey, one of the three (actually four) co-founders already before CEO Evan Williams. All problems are then exploded, the nodes come home to roost, Wall Street - where the company is listed - had most of cashing the head of the expert manager who, after trying the stage career after completing their studies in computer science in Michigan, He had worked for Andersen Consulting and then passed to Google sparrow.
Many issues that have led to this decision, anticipated by Wall Street Journal, confirmed by a tweet profile official, revived by the same Costolo but basically already in the air for months.
Of all the underlying problem: the company's profitability and active users, whose growth is too slow and unable to keep up with other competing platforms. Some estimates say that in 2019 will increase by only 6%. Something had to change. And without wasting any more time.
Of all the underlying problem: the company's profitability and active users, whose growth is too slow and unable to keep up with other competing platforms. Some estimates say that in 2019 will increase by only 6%. Something had to change. And without wasting any more time.
The last quarter, output in April and on the accounts of the first three months of the year, told of revenues from $ 436 million, a good result although below expectations of analysts. Nevertheless, the period closed with a loss of $ 162 million, an increase compared to 132 in the same period last year. Advertising grew by 72% year-on-year ($ 388 million) but users amounted to 302 million monthly active users, a meager 18% on 2014.
The product, in short, is flooded. The double substitution of the product managers in the last two years speaks volumes. Twitter does not produce revenue, grows poorly, is the victim of a context quite complicated in terms of reputation (they are a few months ago on the same rumors Costolo, who launched a campaign antitroll, insults and stalking, as well as against pornography, according a recent survey of British Channel 4 500 thousand per day). It is no coincidence that in afterhours trading following the announcement the stock is up 7%, a move that everyone was waiting to welcome and show with relief. Little served small-hits like the app for streaming Periscope: need more than that to monetize and turn accounts.
Despite having driven the car in a period of great expansion after having assumed command for a phase that was to remain temporary - but was then extended to a five-year period - including landing on the stock exchange in November 2013, the fifty year old manager seems to leave room for someone who proves to have a clear and lucid idea of what to do with the microblogging platform. Removing half the rumors that an acquisition by Google or Yahoo.
The goal is in fact able to really compete with giants like Facebook (launched towards half billion users) finding an autonomy of language, avoiding mutual scopiazzamenti and really gaining with new forms of advertising, as indeed it was happening in the last times with a series of partnerships (Double Click Google) and acquisitions.
