Twitter Inc (NYSE:TWTR) is making headlines now as it is again rumored to be on the brink of getting a new top executive. However, Jason Lemkin pointed out on Bloomberg’s Street Smart that because of the nature of Costolo, the beast that is Twitter and the arena the company is in, Costolo will always be at risk of being ousted.
The story all started after a recent note from Sun Trust analyst Robert Peck who said that Twitter Inc (NYSE:TWTR) will likely oust Costolo next year and put in place another chief executive. Bloomberg’s Sarah Frier noted in the discussion though that this rumor has persisted very long. Nonetheless, she did note that the company actually traded higher after this rumor broke out.
According to Lemkin who is Managing Director at Storm Ventures, the rumor can’t help but be fanned by multiple circumstances.
“The reality is that he’s neither founder nor large shareholder nor sort of traditional corporate CEO. He in some ways came into the job accidentally as COO. With Twitter, as outstanding as it has done over the last five years, with it underperforming its peers, is almost constantly at some risk in the board room,” Lemkin said.
He added that Costolo could actually be considered a success in his job at Twitter Inc (NYSE:TWTR) because when he arrived at the company about five years ago, it was a mess. He has built the company into a $25-billion firm, Lemkin reminded people.
Lemkin said that Twitter Inc (NYSE:TWTR), one of the world’s most visited sites this year, may have perhaps went public too early. Nonetheless, he said it could have went public at just the right time.
Daniel Benton’s Andor Capital Management reported owning 5.75 million Twitter Inc (NYSE:TWTR) shares by the end of the September quarter.