OT: Michigan Alum and Twitter CEO Dick Costolo Stepping Down

Submitted by MGoCombs on June 11th, 2015 at 4:32 PM

I figured since Costolo is a big M Football fan and made a few appearances on the board for his "minor NCAA violation," this is somewhat relevant.

Link

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evenyoubrutus

June 11th, 2015 at 4:35 PM ^

Wow. They didn't announce it on Twitter?

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East German Judge

June 11th, 2015 at 4:38 PM ^

I bet they do the Brandon and have a press release at 1:30 in the morning.

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IB6UB9

June 11th, 2015 at 4:42 PM ^

Is a "tweet" considered an announcement or would/should they have a press release? Is it correct to say Twitter tweeted an announcement? Can Twitter tweet a press release?

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Naked Bootlegger

June 11th, 2015 at 4:39 PM ^

OP used 146 characters, counting spaces. Ergo, illegal by Twitter standards.

/tl;dr

p.s. Didn't know of the Twitter/UM link. I must've been in La Paz when the minor NCAA violation occurred.

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notetoself

June 11th, 2015 at 4:50 PM ^

probably tweeted something inappropriate

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SFBlue

June 11th, 2015 at 4:52 PM ^

Hope that ain't mean Tweeter is selling out to GOOG.

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HarBooYa

June 11th, 2015 at 5:06 PM ^

...that was the reason Costello is out. Shareholders who were clamoring for that (and a more clear biz rev model). I like Twitter the way it is but then again, I am more a user than shareholder.

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LSAClassOf2000

June 11th, 2015 at 5:25 PM ^

Dick Costolo to step down as CEO, will remain on Board, and Jack Dorsey appointed Interim CEO, effective July 1
— TwitterIR (@TwitterIR) June 11, 2015

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mgoDAB

June 11th, 2015 at 5:32 PM ^

They finished like $30M below their projections last quarter and Twitter's stock took a nice dip. Maybe that's the reason?

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ak47

June 11th, 2015 at 6:43 PM ^

Twitter is the perfect example of how these social media apps are crazy over rated by the market. Twitter has terrible numbers, most people who sign up never tweet, a vast majority of tweets are from a small minority of users, no clear Avenue from which to drive income etc. Costello is a casualty of falty expectations, twitter had no chance to meet wall street projections.

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June 11th, 2015 at 7:54 PM ^

I dunno man, when you have that many people using/viewing your website/platform on a regular basis, I think you're going to be just fine. There's plenty of ways to make ad revenue. They have a completely dominant market share and the overhead is tiny for such a visible company.

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ak47

June 11th, 2015 at 10:47 PM ^

They don't have that many users though, that's what I'm saying. A lot of people sign up for twitter but never use it. MySpace probably seemed like a safe bet due to number of users too. Not the end all be all some market watchers make it out to be. When people aren't actively using it it's easy to switch away.

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IncrediblySTIFF

June 11th, 2015 at 11:07 PM ^

," said yahoo. Clearly we can keep all our customers by rapidly changing everything.

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June 11th, 2015 at 11:34 PM ^

Yahoo is doing just fine, though. It was the fourth most visited website on the internet last month. I think they're making out okay.

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bluins

June 12th, 2015 at 2:47 AM ^

At one point yahoo had a negative market cap when you took out their investment in alibaba. They get a lot of traffic but that's largely from users who aren't worth much to advertisers.

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June 12th, 2015 at 7:48 AM ^

Huh. Okay, I'm out of my element here. I defer to those more knowledgable.

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MoJo Rising

June 11th, 2015 at 6:48 PM ^

To become Mich Football's Twitter Account Coordinator.

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BlueCE

June 11th, 2015 at 8:04 PM ^

This is a bad move... and bringing Dorsey in while he is still CEO of Square? Dick brough Twitter from no revenue to what they are today.

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DennisFithian

June 12th, 2015 at 7:45 AM ^

Jack Dorsey the metro-yuccie-haughty guy?

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Zarniwoop

June 11th, 2015 at 8:11 PM ^

Its because they have been unable to hit their projections quarter after quarter after quarter.

No other reason.

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Hotel Putingrad

June 11th, 2015 at 10:34 PM ^

did his parachute open?

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BlueMichigan

June 12th, 2015 at 1:49 AM ^

the majority consensus by analysts covering Twitter was that the job of CEO was way over his head and he felt overwhelming pressure to step down as CEO . After every earnings miss or any recent interview, the question was almost always brought up on whether Costolo would remain as CEO. Most people like Twitter , the product, but TWTR, the stock, never found a way to deliver revenue and earnings in any discernable growth pattern relative to share price. But we won't have to feel sorry for Mr.Costolo,,,he still has an extraordinary high net worth because of Twitter ..

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