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Twitter Inc (NYSE:TWTR) Goes Out of Bounds In CEO Search

twitter inc (NYSE:TWTR)

Twitter Inc reportedly approached former Cisco CTO Padmasree Warrior and CBS Interactive president and CEO Jim Lanzone for the CEO job, says a report from Bloomberg. Twitter has been in search for a CEO ever since Dick Costolo left the post at the end of June. Most forecasts put Jack Dorsey at the help of the firm going forward, but it appears that Twitter is still looking further afield.

twitter inc (NYSE:TWTR)

Twitter should not rush with things

For the CEO, the search team has been evaluating both internal and external talents. Presently, co-founder Jack Dorsey is working as an interim CEO, and is seen by many as the best man for the job including investor Chris Sacca. This is the main reason the external candidates do not consider themselves as the serious contenders for the post, said Bloomberg.

Lanzone joined CBS in 2011 as the president and CEO, when his online TV startup Clicker was acquired by CBS. Before Clicker, Lanzone worked for seven years at Ask.com including being its CEO from 2006 to 2008. Warrior has been Cisco’s CTO for seven years, before leaving the firm in July. Prior to Cisco, Warrior served Motorola as its CTO for four years.

Experts believe that even though CEO search is urgent for Twitter Inc , it should not rush with the decision as was the case with HP, who selected Leo Apotheker quickly in 2010 in order to replace Mark Hurd.

Investors getting unrest

In recent weeks, Twitter stock has been under pressure, and even dropped below the IPO price of $26 at times. Though some of this can be due to the slowing Chinese economy, the impact of a lack of permanent CEO can’t be negated.

Since the firm started searching for the new CEO, its stock has dropped 22%, and many executives have left. On Thursday, the board will meet to discuss the CEO search, says Bloomberg citing sources aware of the matter.

Robert W. Baird & Co. analyst Colin Sebastian said investors are losing patient over the CEO search, and want at least they must be updated on the progress made so far. Sebastian said, “The company, its employees and certainly its shareholders are in a little bit of limbo,” adding “That qualifies it as an urgent matter of business.”

On Wednesday, Twitter Inc. shares closed up 2.89% at $27.81. Year to date, the stock is down over 22% while in the last one-year, they are down over 44%.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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