- Shares of Twitter stock spiked over 10% after the news broke in premarket trading hours on Monday morning
- Agrawal has been with the social media company for over a decade and has served as CTO for about four years
Jack Dorsey has decided to step down as CEO of Twitter and its board of directors has unanimously appointed the company’s CTO Parag Agrawal as the new CEO and member of the board, the company said in a statement.
The executive change is effective immediately, but Dorsey will remain a member of the board until his term expires in May 2022.
Dorsey was the CEO and co-founder of Twitter, but is solely now the co-founder, chairman and CEO of Square. Agrawal has been with the social media company for over a decade and has served as CTO for about four years.
“I’ve decided to leave Twitter because I believe the company is ready to move on from its founders. My trust in Parag as Twitter’s CEO is deep. His work over the past 10 years has been transformational. I’m deeply grateful for his skill, heart, and soul. It’s his time to lead,” Dorsey said in a statement.
Aside from his statement in the press release, Dorsey shared an internal email about the news from his own Twitter account.
Twitter stock (Nasdaq: TWTR) spiked over 10% after the news broke in premarket trading hours on Monday morning.
“I want to thank the Board for their confidence in my leadership and Jack for his continued mentorship, support, and partnership,” Agrawal said in a statement. “I look forward to building on everything we have accomplished under Jack’s leadership and I am incredibly energized by the opportunities ahead. By continuing to improve our execution, we will deliver tremendous value for our customers and shareholders as we reshape the future of public conversation,” Agrawal added.
Dorsey is an outspoken leader and believer of Bitcoin and has integrated the cryptocurrency into both of his companies through payment systems and new innovations like the tip jar feature on Twitter that allows users to pay each other bitcoin using the Lightning Network.
Earlier this month, it was announced that Twitter was forming a team focused on crypto, blockchains and other decentralized technologies after Dorsey labeled bitcoin as one of the three major trends most relevant to his social media company and its shareholders back in July. At the time, he noted that the cryptocurrency would be a major part of Twitter’s growth.
In March, it was reported that hedge fund firm Elliot Management tried to force Dorsey out after accumulating a large stake in the company. But he kept his position after Twitter closed a deal with the company, and another investment firm Silver Lake, to give both businesses a seat on Twitter’s board and funding for a $2 billion share repurchase program.
Twitter did not respond to requests for comment by Blockworks on Monday.
The stock (TWTR) was trading up 4.95%, or $2.33, to $49.40 as of 11:00 am ET.
This is a developing story that could change as more details become available. Please check back for updates.
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