Apparently, 2015 is set to be the year where CEOs of leading technology companies, Twitter Inc (NYSE:TWTR) and Yahoo! Inc. (NASDAQ:YHOO) are set to change, if pundits of the industry have it right! Heading the list of 2015’s top technology news is the likely change of leadership given the anemic performance of Twitter, Yahoo in fiscal 2014.
The call for change is from two detractor groups: First group, are activist investors looking for high profitable returns from the technology players. The second group, are analysts, who believe that CEOs at these two firms are yet to deliver on their strategies.
At the heart of the intense social media speculation that Twitter Inc, would see a first change were unconfirmed news reports that Twitter would see internal promotions for the CEO post. The speculation is that, Adam Bain, who heads the Global Revenue section of Twitter, is likely to replace Dick Costolo as the CEO. However, the reports also claim that Costolo would not be ‘castaway’ but, could take a more strategic post in the company. Further, confirmation from the company is awaited on this speculated management shuffling in 2015.
On a lighter vein, say industry experts, if CEOs are shuffled, things could panned out better for the respective company: If Dick Costolo were to head AOL, Yahoo was headed by Tim Armstrong and Twitter could have Marissa Mayer.
However, the fact remains that Costolo has been lagging behind expectations at Twitter Inc. Singling-out Costolo’s dismal performance thus far, are analysts Walter Price and Robert Peck, suggesting new fiscal year at Twitter Inc needs better leadership. Twitter Inc is expected to report new fiscal earnings guidance by February.
Issues at Twitter
Twitter does not boast user growth and struggles with retaining users. Besides, stock prices too have fallen and despite heavy revenue numbers, the stock price decline has led to demands for leadership change!
Twitter Inc stock struck 4% higher following news that Costolo may be moved!