San Francisco-based Twitter plunged on Thursday ahead of the company making it official that its co-founder Jack Dorsey will be the tech company s permanent CEO.
Dorsey, who also founded San Francisco-based Square, an online payments company, is currently Twitter s interim CEO. Dorsey also is CEO of Square.
Twitter shares fell more than 6 percent on Thursday.
Analysts generally liked the concept of Dorsey returning to the helm at Twitter, a micro-blogging service, on a permanent basis. But they also pointed out that being CEO of two different companies is far from ideal.
The notion that Jack Dorsey would serve as CEO of two public companies gives us pause, particularly given that concerns persist regarding Twitter s user growth trajectory and ability to stem deceleration in monetization trends, wrote two analysts from Nomura Securities.
On the upside of two CEO jobs for Jack Dorsey, according to the Nomura analysts: Chief Financial Officer Anthony Noto and Chief Revenue Officer Adam Bain are more likely to remain in their executive posts at Twitter.
We went on record on Sept. 29 stating that a dual-CEO is not ideal, nor are the comparisons to Steve Jobs and Elon Musk in justifying it, said an analyst with Monness Crespi & Hardt.
Part of the challenge for Dorsey as a dual CEO is both Square and Twitter are facing fierce competition in their respective arenas.
To generate revenue, Twitter has launched a buy now feature that enables any U.S. retailer to sell physical products, digital goods or services all within a tweet. Twitter will take a cut of many of the transactions. The company s user growth has slowed, which has increased the pressure on the company to bolster its revenue.
Every move each company makes from this point forth is critical to not only the success of the companies, but also to their viability as a whole, the Monness Crespi analyst wrote.
http://www.siliconbeat.com/2015/09/30/report-twitter-could-name-jack-dorsey-permanent-ceo-tomorrow/
Photo: Twitter co-founder Jack Dorsey
The post Twitter plunges ahead of possible decision to tap Dorsey as CEO appeared first on SiliconBeat.
