Twitter Inc (NYSE: TWTR)
Twitter has fallen on rough times as of late and for very good reasons. However, investors seem to be excited that Jack Dorsey has taken the permanent role as CEO of the company. Today, we’ll talk about what has made things so hard on Twitter as well as whether or not I believe that Jack Dorsey is a man that can save the struggling company.
Why Twitter Is Struggling In The First Place
Twitter is an incredibly large social media giant. However, as of late, investors have had a major concern about the company. Throughout the year, TWTR simply hasn’t been able to bring in new audience members and keep them as regular users. Don’t get me wrong, Twitter has plenty of strengths. They are gurus when it comes to formulating plans to earn more from their existing users. However, investors know that if the company can’t bring new users in, TWTR is likely to reach a plateau at some point.
As a result of the new users issue the company has been facing, Dick Costolo, the previous CEO of TWTR was forced to resign. Upon his resignation, co-founder of the company, Jack Dorsey took over the position as interim CEO while Twitter looked for a new CEO that would be able to save the company from the downtrends it has been dealing with. However, they couldn’t seem to find a qualified candidate that was interested in the position. After all, whoever took on the position would have to be a well-respected executive, and jumping on a sinking ship could lead to their tarnished reputation in the end.
So, earlier this month TWTR announced that Jack Dorsey would maintain the CEO position permanently. However, this in itself raises a few concerns.
My Concerns With Regard To Dorsey Holding The Role As Permanent CEO
TWTR needs a great CEO, and there’s no doubt in my mind that Dorsey can be a great CEO. Nonetheless, I still have my concerns. In fact, I have two major concerns with regard to Dorsey’s ability to help Twitter rise from the ashes…
- Dorsey Has Held This Position In The Past – Let’s not forget, Jack Dorsey is a co-founder and has acted as CEO of Twitter in the past. However, when he was CEO, things didn’t go very well. In fact, Dorsey never put his full attention into Twitter as he focused on extracurricular activities and partying, ultimately giving his team members the idea that he didn’t have his head in the game. Moreover, communication with investors during his role as CEO was lacking to say the least! So, in 2008, Jack Dorsey was fired from his role as CEO of Twitter! If he couldn’t do what he needed to do in the past, I’m not sure how much we can expect of him this time around as TWTR CEO.
- There’s Only So Much Time In The Day – Another thing to remember here is that there’s only so much time in the day. When trying to save a struggling company like Twitter, the CEO has to devote quite a bit of time to the company. However, Dorsey is also the CEO of Square, a company he founded that is going public relatively soon. Now, on top of managing a company that is going public, a task that takes quite a bit of time, Dorsey has to squeeze TWTR into the mix. While Steve Jobs was able to do it, I’m not sure that Dorsey has it in him!
So, Is Dorsey Going To Save TWTR?
To be honest with you, I don’t have an answer for this question. I can say that I am incredibly concerned with the amount of time he has available to devote to such a task. Also, a lot of this is going to depend on whether or not, with age, Dorsey has calmed down on the partying and will put business over activities like sewing and drawing lessons. Really, only time will tell, however, I wouldn’t be willing to put my money on his success.
What Do You Think?
Does Dorsey have what it takes to save TWTR? Let us know in the comments below!
[Image Courtesy of Mashable]