It’s official: Jack is back.
Twitter confirmed the news Monday morning (Oct. 5) that the decision to appoint Jack Dorsey — Twitter’s founder — as permanent CEO was approved by the board on Sept. 30. The board also confirmed that Dorsey will continue to serve as CEO of Square. While Dorsey will serve as CEO, he will not be made chairman, as the board noted that role will be delegated to another person, whom has yet to be named.
“Dorsey was selected to serve on the Board because of the perspective and experience he brings as one of Twitter’s founders and as one of Twitter’s largest stockholders, as well as his extensive experience with technology companies,” reads the shareholder’s SEC filing.
The board also announced that Adam Bain, formerly the company’s president of global revenue and partnerships, will serve as COO.
Twitter held a conference call this morning about the announcement, but prior to the announcement, Dorsey tweeted out a series of messages about the next steps, including a few thoughts about Square. Here are a sample of his tweets:
My focus is to build teams that move fast, and learn faster. In the past 3 months we have increased our speed and urgency at both companies.
— Jack (@jack) October 5, 2015
A few things about each company, and their impact in the world. What we stand for gives us purpose, and that purpose dictates our job ahead.
— Jack (@jack) October 5, 2015
Square stands for economic empowerment. We stand for financial systems that serve instead of rule. We stand for leveling the playing field.
— Jack (@jack) October 5, 2015
Twitter stands for freedom of expression. We stand for speaking truth to power. And we stand for empowering dialogue.
— Jack (@jack) October 5, 2015
Both companies have strong businesses and are well positioned to grow their impact in the world. I will do whatever it takes to ensure that.
— Jack (@jack) October 5, 2015
We’re working hard at Twitter to focus our roadmap on a few things we can make really great. And we’re strengthening our team along the way.
— Jack (@jack) October 5, 2015
Our work forward is to make Twitter easy to understand by anyone in the world, and give more utility to the people who love to use it daily!
— Jack (@jack) October 5, 2015
While in the past four months the 38-year-old CEO has been generally applauded for juggling the two companies without breaking one, things might just be about to get a lot more difficult with Square reportedly planning to go public later this year.
“Management and management focus are the single most determining factor of the success, or lack thereof, of a company pursuing an IPO,” Lise Buyer, an IPO consultant with Class V Group in Silicon Valley, told Reuters. “Were I a [Square] investor, I would want to be compensated for the cost of a part-time CEO who already had a full plate. And by compensated I mean I would expect a lower valuation,” she added.
Twitter, which hired Dorsey as an interim CEO after Dick Costolo stepped down, earlier last month hinted that he could handle the demands of running both mammoth companies. “There is so much uncertainty and so much attention needed at Twitter that it certainly should not inspire confidence in potential investors about Square,” Buyer told Reuters.
The hashtag #JackIsBack started trending on Twitter in June once it was announced that Dorsey would be taking over as interim CEO — following the departure of Costolo. And in those three months since the search started, its value had dipped as its stock slumped 22 percent, and other executives left.
Previously, there were concerns about Dorsey being too overloaded to properly manage the two tech giants and handle the work, but it seems the minds of some Twitter investors and Square investors have taken on a more optimistic view. “After watching Jack execute on his vision at Square, and more recently at Twitter as CEO, we are highly confident in Jack’s ability to serve as CEO of both companies,” Justin Dini, a spokesman for Rizvi Traverse Management, told The New York Times.
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