ST. LOUIS – Shares of Twitter are surging after an announcement from the social media platform said that co-founder Jack Dorsey, a St. Louis native, will step down as the company’s chief executive.
Twitter’s stock, which has consistently underperformed on the market, jumped more than 10% at the opening bell Monday.
He will be succeeded by Twitter’s current Chief Technology Officer Parag Agrawal. Dorsey will remain on the board until his term expires in 2022. Agrawal has been CTO since 2017 and at Twitter since 2011.
In a letter posted on his Twitter account, Dorsey said he was “really sad…yet really happy” about leaving the company and that it was his decision.
Dorsey has faced several distractions as CEO, starting with the fact that he’s also founder and CEO of the payments company Square. Critics have long complained that the arrangement has divided his attention to Twitter’s detriment.
Dorsey is also the top executive at Square, a financial payments company that he founded, and some big investors have openly questioned whether he can be effective in leading both.
More than 850 Square Inc. employees moved into new office space in downtown St. Louis last summer. The company moved from the Cortex Innovation District and signed a 15-year lease to work at the former Post-Dispatch building.