Jack Dorsey Step Down As Twitter’s CEO, Moving To Square

SYNOPSIS

  • Twitter’s CEO Jack Dorsey stepping down after 6 years of service.
  • Going all in square.
  • Dorsey has faced questions about his devotion to Twitter since his return, given that he is also the CEO of Square.

After six years as CEO of Twitter, Jack Dorsey, one of the company’s co-founders, is stepping down. On Nov. 29, Parag Agrawal, the company’s previous CTO, took over as CEO.

Dorsey said in his resignation letter, which he released on Twitter, that he wanted the firm to move away from its co-founder’s vision and control, calling founder led organisations “very constraining.”

Dorsey served as Twitter’s original CEO from 2006 to 2008. After then he returned in 2015 after a hiatus from the company’s day-to-day operations.

Dorsey has faced questions about his devotion to Twitter since his return, given that he is also the CEO of Square, a financial services firm he established in 2009

Last year, Dorsey faced a strong challenge from Elliott Management’s activist investor Jesse Cohn, who bought a piece of the company and tried to drive Dorsey out.

After a protracted battle, Cohn was eventually defeated and stepped down from Twitter’s board of directors in April 2021.

Dorsey, on the other hand, is leaving Twitter on a good note.

Despite the fact that Facebook’s nearly 2 billion daily users (as well as those of Snapchat, TikTok, and Pinterest) outnumber Twitter’s 211 million, Twitter has become an important platform for news, political debate, and live events— as well as world leaders, particularly former US President Donald Trump (now banned for inciting violence during the Jan. 6, 2021 insurrection at the US Capitol).

Dorsey Goes All In Square

Dorsey is expected to devote his whole attention to Square. The banking firm he co-founded in 2009.

Square is a payments startup that helps a lot of small businesses with their point-of-sale transactions. Cash Program, a peer-to-peer payment app that competes with PayPal’s Venmo, is also owned by it.

It has just expanded its e-commerce footprint by paying $29 billion for Afterpay, an Australian startup that pioneered buy-now, pay-later.

It also owns the web hosting provider Weebly, the music streaming service Tidal, and the food delivery app Caviar until recently.

While Twitter made money in each of the first three quarters of 2021 (except for the third, when it had to pay a large legal settlement), it lost $1.14 billion in 2020.

Square is intertwined with traditional retail, e-commerce, peer-to-peer lending, and, increasingly, the cryptocurrency market.

While Twitter is diversifying its revenue streams, particularly through its subscription service, Square just has more chips on the table, with lower risk and higher profits.

For more interesting and informative Twitter talks and news, stay connected.

Image credits: Gettyimages

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