Jack Dorsey has confirmed that he is quitting as Twitter’s CEO, causing wild swings in the company’s stock price.
He stated on the platform that it was “finally time for me to leave,” explaining in a statement that it was “because I believe the company is ready to move on from its founders.”
Former Chief Technology Officer Parag Agrawal has been named as the new CEO and a member of the board, effective immediately. He has stated that he is “honored and humbled” by the appointment.
On Monday morning, shares in the social media platform rose 9 percent after CNBC reported that Dorsey, 45, who co-founded Twitter in 2006, was leaving his position.
After the spike, trading on the New York Stock Exchange was halted, but shares resumed trading more than 4.5 percent higher than where they began the day.
However, the gains were short-lived, and the stock closed 2% lower than its opening price. (Read: Twitter to give more details about verification)
Dorsey will continue to lead financial payments company Square, which has a market capitalization of more than $98 billion compared to Twitter’s $38 billion.
Dorsey took over as CEO of Twitter in 2007 and was reportedly fired a year later for, among other things, spending too much time focusing on fashion design. He returned to Twitter as executive chair in 2011, became wealthy from the IPO, and returned to the CEO role in 2015.
“Such has been the consternation surrounding Jack Dorsey’s ‘part-time’ role as CEO of Twitter, that it’s little surprise investors initially reacted positively to speculation that he was leaving the platform,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
“But the initial euphoria fizzled out, as the new pick for the driving seat, Parag Agrawal, the current chief technology officer, appeared to underwhelm investors,” she added. “The realization of the mountain to scale and some disappointment that a Twitter outsider hasn’t been brought in to offer fresh ideas, is likely to be behind the loss of initial gains.”
Dorsey is leaving a company that he has repeatedly had to defend in front of U.S. Congressional committees, including the company’s contentious decision to ban Donald Trump in response to comments he made about the 2020 US presidential election.
Earlier this year, the former U.S. President requested that a federal judge order Twitter to restore his account.
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