Following the announcement, the CEO sent out a string of tweets promoting his vision of both companies.
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Dorsey was one of Twitter‘s co-founders and has acted as chairman of the board since October 2008. The company has permitted Dorsey to continue as the CEO of financial services and mobile payment company Square Inc. that he co-founded in 2009.
Bain is highly respected at Twitter and has been an instrumental in signing new partnerships at the company, included a recent deal with the National Football League.
Dorsey’s challenge is not limited to making Twitter better. He does not only have to restore faith on Wall Street in the future growth of Twitter, but he must persuade investors he is the one that can reignited growth.
Dorsey has been Twitter’s interim CEO since Dick Costolo stepped down abruptly four months ago, so the big change, approved by the board on September 30 according to an SEC filing, is to make Dorsey’s role permanent.
Dorsey has matured since the last time he held the role as full-time CEO at Twitter, sources from inside Twitter told Re/code ahead of the permanent CEO announcement.
Its board is likely hoping Dorsey’s return will have the same winning effect on Twitter as the return of another Silicon Valley wunderkind, Steve Jobs, did for a once floundering Apple (LSE: 0R2V.L – news).
“I’ve been CEO of both companies [Twitter and Square] for over 3 months now”.
SunTrust maintains a Buy rating with a $38 price target on Twitter stock.
“‘Why Twitter’ must be articulated clearly”, Dorsey said. With more than 300 million monthly active users, Twitter has tremendous reach but has lagged in attracting and retaining new users, who in turn entice businesses to advertise on Twitter and drive revenue. He also hypes Twitter as the most powerful communication tool.
Sporting dreadlocks and a nose ring back then, he was accused of poor management and was finally replaced by another Twitter co-founder, Evan Williams.
Investors and analysts have lauded faster product rollouts since Dorsey took the helm in July, including a widely available “buy now” button that allows users to make purchases directly through Twitter.
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Dorsey acknowledged this sentiment during a recent Twitter earnings call.
