Twitter Shares Drop as Wall Street Waits on CEO Appointment

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Jack Dorsey

Dorsey is a co-founder, previous CEO and board chairman at Twitter, and he has been interim CEO since Dick Costolo stepped down in June after five years.

Shares of Twitter dropped 8 percent on Thursday in reaction to speculation it was about to name Jack Dorsey its permanent CEO — or just as likely a reaction to Twitter taking so much time to either confirm or deny the rumors, which started earlier this week.

Dorsey is a co-founder, previous CEO and board chairman at Twitter, and he has been interim CEO since Dick Costolo stepped down in June after five years.

If Dorsey is indeed made the permanent CEO of Twitter, he'd be in the rarified company of Elon Musk and a few others who are CEOs of two companies at once, given that Dorsey already runs Square, a mobile payments company. Musk, on the other hand, is CEO of both Tesla Motors and SpaceX.

On Thursday, Wall Street was mulling the implications of Dorsey having to split his time between Twitter and Square. Also, some were questioning whether it could be a conflict of interest, given Square has partnered with Twitter to make it simple for users to donate to political candidates.

Dorsey was Twitter's first CEO in 2006, overseeing the startup company's massive early growth. A year after its founding, users were posting 400,000 tweets per quarter and a year after that they were posting 100 million per quarter.

Twitter did not respond to a request for comment from The Hollywood Reporter.

Twitter shares dropped $2.26 on Thursday to $24.68, giving the unprofitable social-media company a market capitalization of $16.7 billion, roughly the same as Viacom.

Email: Paul.Bond@THR.com

 

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