Twitter shares surge amid reports CEO Dorsey will step down

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Twitter co-founder Jack Dorsey is expected to step down as chief executive officer of the social media giant, according to multiple US media outlets.

Twitter co-founder Jack Dorsey.Credit:AP

Dorsey and Twitter’s board have settled on his successor, a source with knowledge of the change told Reuters.

The company’s board has been preparing for Dorsey’s departure since last year, the report said.

CNBC first reported the news on Monday, without providing any other details.

Twitter shares surged 9 per cent in early trading, while those of digital payments firm Square, which is also helmed by Dorsey, were up 3 per cent. Trading was then suspended ahead of an expected announcement.

Dorsey, 45, is known to have been taking an increasing interest in cryptocurrencies.

The news comes as Twitter has accelerated the pace of its product innovation over the past year to compete with social media rivals such as Facebook and TikTok, and to reach its goal of doubling annual revenue by 2023.

In early 2020, Dorsey faced calls from Elliott Management to step down, after the hedge fund argued he was paying too little attention to Twitter while also running Square.

Dorsey fended off the pressure by giving Elliott and its ally, buyout firm Silver Lake Partners, seats on Twitter’s board.

More to come.

Reuters, Bloomberg

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