Twitter Inc. named long-time Googler, and former senior exec at Alphabet Inc , Omid Kordestani as its new Executive Chairman. This comes right after the announcement of job cuts, after appointing Jack Dorsey as its new CEO.
Twitter Advantages From Google’s Whims
Google has recently announced it would to turn itself into Alphabet Inc. , a group of holdings that will own Google as well. Needless to say, Google wants to move on from search biz to far more exciting projects like Google X, Google Auto, Robot cars, etc.
With this decision, the post of the Chief Business Officer came at risk. Without any specific title, Omid Kordestani was listed as an advisor to Google and Alphabet.
Twitter took the chance and snagged the old timer right under the nose of Google. Omid Kordestani has been with Google since 1999, being only the eleventh employee when the company started. He is credited with being at the helm of the company when it brought in profit for the first time.
“We’re excited for Omid and very happy for Twitter. Omid was instrumental in establishing Google’s business and helped us develop really close, longstanding partnerships across the industry,” a Google spokesperson said. “We wish him every success in the years ahead.”
Twitter Business Needs An Overhaul
Twitter business has been going through a rough phase since its IPO. Farhad Manjoo from New York Times thinks, “Twitter, as a company, has had trouble focusing on one purpose for which it should aim to excel. The lack of concentration has damaged its prospects with users, investors and advertisers. Choosing a single intent for Twitter — and working to make that a reality — ought to be the next chief’s main task.”
Twitter’s ad revenue growth was less than satisfactory. The revenue though rose 74 percent in the second quarter this year compared to the same a year ago. Twitter attributed the dismal performance to its users not engaging with direct response ads as expected. Twitter is new to direct response marketing, after all. Following that, Twitter released Buy buttons whereby one can purchase online right through the social networking site.
Twitter’s share price has fallen by over 42 percent in the last 6 months. But with the new chairman coming in, the share price was up 1% to $29.36 in early trading.
What the new induction of Omid Kordestani might do is, lead Twitter out of this ditch, and propel Twitter to a more lucrative journey. However, it must be noted that the new executive chairman of Twitter is only 11 tweets of experience. To be of any help to the firm, he has to understand Twitter before he can make any change.