Technology

Twitter’s Dick Costolo Stepping Down as CEO

Published

9 years ago

June 12, 2015

In this Jan. 8, 2014 file photo, Twitter CEO Dick Costolo speaks during a panel discussion at the International Consumer Electronics Show in Las Vegas. Costolo will step down as CEO of Twitter after almost five years, the company and Costolo announced Thursday, June 11, 2015. (AP Photo/Jae C. Hong, File)

BRANDON BAILEY, AP Technology Writer

SAN FRANCISCO (AP) — Twitter CEO Dick Costolo, who helped turn the trendy messaging startup into a global town square, is stepping down amid criticism over the company’s disappointing financial performance and a recent stock slide.

Co-founder Jack Dorsey, who served as CEO during Twitter’s early years, will temporarily take the reins while the San Francisco company looks for a permanent replacement.

Investors greeted the move with enthusiasm, driving Twitter shares up nearly 6 percent in late trading after the announcement Thursday afternoon. Both Dorsey and Costolo, however, expressed confidence in the company’s direction and said the board isn’t seeking major changes.

“I believe in the course the company is on and the management team’s ability to fulfill that and execute on it,” Dorsey, who is also board chairman, said during a joint conference call with Costolo and Wall Street analysts.

Both men characterized Costolo’s departure, effective July 1, as voluntary. The 51-year-old Costolo said he began talking with Twitter directors about leaving last year, although he did not say what he plans to do next. He will not receive any severance package.

Costolo had been Twitter’s CEO for five years and led the company through a successful stock market debut in 2013. Though he once worked as a stand-up comedian, Costolo has a degree in computer science and led three earlier tech startups, including one that he sold to Google. He was hired as chief operating officer for Twitter in 2009, three years after its launch.

His efforts to turn the once-quirky messaging service into a significant industry player, and a major venue for online advertising, made Costolo a respected figure in Silicon Valley. Two years ago, Time magazine named him “one of the most influential minds in tech.”

But even though Twitter Inc. had $1.4 billion in revenue last year, primarily from digital ads, it hasn’t made a profit as a public company. And its shares have not recovered since they lost almost a third of their value after the company’s last quarterly financial report in April, when it missed Wall Street revenue estimates and prompted some analysts to question the company’s leadership.

At that time, the company also lowered its financial outlook. On Thursday, Dorsey said the company is making no further changes in its financial projections.

While Twitter reported 301 million monthly users in the first quarter of this year, up 18 percent from a year earlier, it hasn’t seen the kind of growth that its bigger rival Facebook has enjoyed.

Under Costolo, the company introduced new advertising products and user features, including Periscope, which allows users to post live streaming video. But if its fans are fiercely loyal, critics say newcomers still find it daunting to learn Twitter’s quirky terminology and customs.

“The vast majority of people who signed up no longer use the service,” said Nate Elliott, a social media analyst at Forrester Research. “They need to do a much better job at giving people a reason to come back every day and making marketers happy.”

“There were lingering concerns among some investors around the leadership capabilities of Mr. Costolo,” added stock analyst Colin Sebastian of RW Baird, in a note to clients after the announcement.

Costolo will remain on Twitter’s board of directors. Dorsey said the company will consider internal and external candidates for his permanent replacement.

According to a company filing, the board won’t decide until later this year if he is to receive extra pay for taking on the CEO duties. The 38-year-old Dorsey said he’ll also continue to run Square, the payment processing startup he founded after a previous stint as Twitter’s CEO ended in 2008.

Costolo tweeted about the change Thursday afternoon. Greeting Dorsey by his Twitter handle, Costolo wrote “Welcome back, @jack” and linked to the official Twitter announcement.

While Dorsey said a search committee will set criteria for selecting the next CEO, he added, “We’re looking for someone who really uses and loves the product.”

___

Technology Writer Mae Anderson contributed from New York.

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Attorney General Rob Bonta, Oakland Lawmakers, Introduce Legislation to Protect Youth Online

At a press conference in downtown Oakland on Jan. 29, Attorney General Rob Bonta joined Sen. Nancy Skinner (D-Berkeley) and Assemblymember Buffy Wicks (D-Oakland) to announce two pieces of legislation designed to protect children online. The bills are Senate Bill (SB) 976, the Protecting Youth from Social Media Addiction Act and Assembly Bill (AB) 1949, the California Children’s Data Privacy Act.

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April 16, 2024

Oakland Post

From left to right: Sen. Nancy Skinner (D-Berkeley), Attorney General Rob Bonta and Assemblymember Buffy Wicks (D-Oakland) at a press conference introducing legislation to protect young people online.

By Magaly Muñoz

The bills are Senate Bill (SB) 976, the Protecting Youth from Social Media Addiction Act and Assembly Bill (AB) 1949, the California Children’s Data Privacy Act.

Skinner authored SB 976, which addresses online addiction affecting teenage users, while Wicks’s bill, AB 1949, takes on big tech by proposing data privacy and children rights protections.

“Social media companies unfortunately show us time and time again that they are all too willing to ignore the detriment to our children, the pain to our children, the mental health and physical challenges they face, in order to pursue profits,” Bonta said.

SB 976 would allow parents to control the nature and frequency of the content their under-18-year-old children see on social media. Notifications from social media platforms would also be paused from midnight to 6 am and controls would allow parents to set time limits on their children’s usage based on their discretion.

Skinner stated that the longer that kids are on their phones during the day, the higher the risk for depression, anxiety and other related issues.

The bill would also push to get rid of addictive media that is harmful for young women and girls, specifically image filters that mimic cosmetic plastic surgery.

Bonta and 33 other attorney generals had previously filed a lawsuit against Meta, owner of the popular social media applications Instagram and Facebook. The filing claims that the company purposefully uses algorithmized content that harms younger audiences.

“Social media companies have the ability to protect our kids, they could act, but they do not,” Skinner said.

The Child Data Privacy Act would strengthen existing protections for data privacy under the California Consumer Privacy Act (CCPA). The lawmakers argue that the law does not have effective protection for those under 18 years old.

Wicks stated that the bill would forbid businesses from collecting, using, sharing, or selling personal data of anyone underage unless they receive informed consent, or it becomes necessary for the purpose of the business.

Wicks added that the acts would make it so that a search on the internet like “How do I lose weight?” would not result in dieting pill advertisements targeting youth, which, some experts report, could be harmful to their mental and physical health.

“In a digital age where the vulnerabilities of young users are continually exploited, we cannot afford to let our laws lag behind, our children deserve complete assurance that their online experience will be safeguarded from invasive practices,” Wicks said.

Supporters of the two acts say they have gained bipartisan support issue, but the authors and Bonta expect them to be met with pushback from the affected companies.

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Unleashing the Power_ Discover the The Thrills…F-TYPE Convertible

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4 months ago

December 18, 2023

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Powered by a robust 5.0 Liter Supercharged 8 Cylinder Gas Engine, the F-Type R75 doesn’t just purr; it roars with a mighty 575 horsepower and 516 lb-ft of torque. Coupled with an 8-speed Automatic Transmission, the car offers an exhilarating drive that is both fast and smooth. The All-Wheel Drive system ensures excellent traction and stability, making it a joy to handle in various driving conditions. The Electric Power Assisted Steering and JaguarDrive Control with Selectable Driving Modes add to the car’s agility, providing a driving experience that is as intuitive as it is thrilling. Additionally, the Adaptive Dynamics and Electronic Active Differential with Torque Vectoring by Braking enhance the car’s responsiveness, making every turn a testament to its engineering prowess. Unique to AutoNetwork.com.

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Join us for a virtual car’s best-detailed walkaround of the sleek and stylish 2024 Jaguar F-TYPE AWD convertible. Get an up-close look at the exterior design, interior features, and performance capabilities of this luxury sports car. From its powerful engine to its advanced technology, this video will give you a comprehensive overview of what makes […]
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