It was the tweet heard around the Twitterverse: Twitter CEO Dick Costolo is out.
The company announced the news today in—what else?—a tweet. Costolo is stepping down, while Twitter cofounder Jack Dorsey has been appointed interim CEO effective at the beginning of July. Costolo will continue to serve on Twitter’s board.
“There is no one better than Jack Dorsey to lead Twitter during this transition,” Costolo said in a company statement (below). “He has a profound understanding of the product and Twitter’s mission in the world.”
The embattled Costolo’s departure isn’t all that surprising. In the past year, Twitter has struggled to find its footing. It has been plagued by concerns from shareholders of stagnant user growth and from users about harassment on the platform. And while the company is popular with journalists, brands, and power users, it hasn’t been able to gain the mass appeal that Facebook has with its 1.4 billion users, compared to Twitter’s roughly 300 million.
Under Costolo’s reign, the company has faced intense scrutiny from both Wall Street and its original investors. Earlier this month, one of Twitter’s first backers, venture capitalist and prolific tweeter Chris Sacca, wrote a lengthy blog post on what he believed Twitter could do to realize its potential and shore up Wall Street’s confidence in the company.
“I believe in Twitter. The company itself is improving, not worsening,” Sacca wrote. “The stock market doesn’t get that because Twitter has failed to tell its own story to investors and users.”
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