Image copyright Twitter Image caption Dorsey, right, made the announcement via tweet
The chief executive of Twitter, Jack Dorsey, is stepping down from that position and returning to his position as chairman.
Mr Dorsey will be replaced as chief executive on 13 April by the company’s COO, Anthony Noto.
Mr Dorsey said in a tweet that stepping down as CEO “is the next step” to strengthen the company.
Mr Dorsey will remain chairman of the company until 13 October 2018.
“After nearly seven years leading Twitter, I’ve decided to return to being CEO of Square,” Mr Dorsey wrote.
“Anthony has been running the company for two years and growing it at an amazing pace, and now I’m going to help him and the rest of the management team build on that success,” he said.
Mr Dorsey, who co-founded payment system Square, led Twitter through a difficult stretch in its history, as well as its initial public offering last year.
“Jack’s ownership stake represents about 2% of Twitter’s voting power. Under the control of a founder, the company could hold him and his influence in check, and his full control at a later date,” Neil Campling, an analyst at Northern Trust Capital Markets, told Reuters.
“Whether it will prove beneficial is unclear, but perhaps an unencumbered Dorsey could be more creative and bring in new ideas,” he added.
Wall Street reacted positively to the news, with Twitter shares rising 6% to $28.55 at the open in New York.
“Mr Dorsey’s departure as CEO is not a surprise to Wall Street as the company reported last year that Mr Dorsey would be CEO of Square and Twitter for at least two years after the IPO,” Claire Murdock, an analyst at Forrester Research, told the Wall Street Journal.
Meanwhile, shares in Square also rose 6% in pre-market trading.
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