Twitter has named Omid Kordestani as the company’s executive chairman, with the appointment coming not long after the executive left Google in the wake of the Alphabet restructuring.
The new executive chairman ascension comes only a little over a week after Jack Dorsey, who has dominated social media headlines, was officially named chief executive officer. The company announced plans to separate the chairman and chief executive officer positions from one another.
[bctt tweet=”The new executive chairman ascension comes only a little over a week after Jack Dorsey took Twitter’s helm.”]
Seeking Alpha reported Wednesday (Oct. 14) that initial positive reaction sent the shares of Twitter up a bit more than 1 percent, noting that Twitter has relationships with the search engine company in place, encompassing search and ad integration. In the meantime, the financial media has speculated on a tie-up or outright merger between the two companies dating back for some time. Later in the day, news reports said that Kordestani will have an operational role at Twitter, with an eye on strategy and recruiting new talent.
Yet, noted Seeking Alpha, reaction was muted as shares in Twitter common stock finished the day up 2 percent, post an analyst downgrade from the sell-side, via JMP’s Ronald Josey. The analyst wrote that while his firm continues “to believe Twitter is the real-time Web, that its ‘#’ and product are firmly ingrained in our culture and that new management should bring stability to the organization, we feel engagement growth is likely to remain below that of industry peers as it will likely take time for Moments and newer products to gain traction.”
Just before the announcement that there was a new face in the C-suite, news reports said that Dorsey has been making strides toward laying off several employees — looking to downsize significantly from its more than 4,000 staffers, even as the company’s user base showed slowing growth.
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