Financial News

  • 13 June 2014, 15:06

Twitter Executive Quits Amid Stalling Growth

One of Twitter's most senior executives has left his role amid falling share prices and stalling growth.

Chief operating officer Ali Rowghani announced on his account: "Goodbye Twitter. It's been an amazing ride and I will cherish the memories."

It is the biggest executive departure since the microblogging company's initial public offering last year.

The company later filed a statement with the Securities and Exchange Commission saying that he will act as a strategic advisor to chief executive Dick Costolo.

Recent reports suggested that Mr Rowghani had recently had some of his responsibilities taken from him.

He also recently sold 300,000 shares of his Twitter stake for a $10m (5.9m) profit - a move that raised eyebrows as co-founders Evan Williams and Jack Dorsey had pledged to hold on to theirs to signal a vote of confidence in the company.

The former Pixar executive joined Twitter four years ago and helped launch its initial public offering.

In 2012, Mr Costolo said the company - which had 200 million users - would double the figure by the end of 2014.

Growth has since stalled, and it is now unlikely to hit that target. Twitter currently has around 255 million users.

Since December, Twitter shares have fallen 50% and shares are trading at less than half of the 52-week high of $74.73 (44.40).

Mr Rowghani was a director of Twitter UK, along with Mr Costolo, when it fell foul of business regulator.

Twitter UK was fined for late filing of accounts and the company's subsidiary TweetDeck was subsequently dissolved by Companies House over repeated filing failures.

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