Twitter’s Big Leadership Shake‑up
On Monday, 29 November, Twitter let the world know that its co‑founder and long‑time CEO Jack Dorsey is stepping away from the helm, and veteran Parag Agrawal is taking the reins. The move signals the board’s green light for a bold revenue playbook that’s aimed to double annual earnings by 2023.
Stock‑market reaction
- Shares spiked almost 10 % right after the announcement.
- But closed down 2.7 % by the end of the day.
Why the change matters
Under Dorsey’s two‑decade stewardship, Twitter rolled out newsletters (Revue), launched the live‑audio Spaces feature, and pushed advertising upgrades—all attempts to keep pace with Instagram and TikTok. Yet the platform faced criticism for moving too slowly and had to battle a slump in shares, putting extra pressure on its dual‑CEO arrangement.
Dorsey’s split‑personality saga
He’s been juggling his role as Twitter’s chief while also helming Square, his payments company. That double‑header got a nudge from hedge‑fund Elliott Management in 2020, who pressed him to focus on Twitter alone. Dorsey countered by bringing Elliott and Silver Lake onto the board.
What’s next for the ex‑CEO
- Dorsey will remain on Twitter’s board until the 2022 annual meeting.
- He is expected to concentrate on Square and his philanthropic interests.
- The board’s move has been in the works since last year.
Parag’s vision
Agrawal, who’s spent ten years riding the Twitter wave, said he’s all in for the aggressive strategy but emphasized the “critical challenge” of turning plans into results. He’s looking to keep the platform fresh and fast.
Board’s confidence
Elliott’s managing partner, Jesse Cohn, and senior portfolio manager Marc Steinberg welcomed the transition. “They (Agrawal and Taylor) are the right people for Twitter right now,” they said.
In a heartfelt note to staff, Dorsey admitted he grew both happy and melancholy: “I’m really sad…yet really happy.” He underscored that the decision to step down was entirely his own and expressed pride in the strength of the team.
Engineering focus
Agrawal Takes the Wheel at Twitter: Engineering is the New Game Plan
Why a Tech Lead Matters More Than a PR Guru
When Twitter’s board chose Srikanth Agrawal as the new chief executive, they swapped a splashy name for a tech-savvy engineer. Agrawal’s track record in cryptocurrency & blockchain tells us the company wants to swing the dial from “post a tweet” to “build a platform of tomorrow.”
Blue Sky or Blue Crust?
- Blue Sky is the brainchild of Twitter, a “decentralised” initiative aimed at creating a common social‑media standard.
- Think of it as the universal plug that lets you drop a post on one platform and have it appear on a handful of others.
- Even founder Jack Dorsey knows it’ll take years to get the hookup just right.
What Investors Worded Under the Surface
According to Baird Equity Research, the market is “pumping out the optimism that Agrawal’s coding chops will turbo‑charge Twitter’s ads engine.” That’s the key revenue lifeline.
Ads Astoundingly Under‑Tuned
- Twitter’s main money‑maker is still ad sales—but its targeting game is trailing Facebook by a wide margin.
- Right now, highly‑targeted ads make up just 15 % of revenue; the ambition is a hefty 50 %.
- Vendors say the platform’s product‑sales push is still in the “under construction” phase.
Missing a Fresh Perspective?
Susannah Streeter of Hargreaves Lansdown noted a mild buzz of disappointment: “Appreciating Agrawal’s uphill climb, but we’d love an outsider injecting fresh ideas.” A classic management dilemma: stay inside or bring in an outsider to spark a change.
Bottom Line
Twitter’s new CEO chief belief: engineering drives relevance and revenue. The challenge? Marrying cutting‑edge tech with a killer advertising strategy—and hopefully retrieving that 50 % dream within the next few fiscal years.
