Twitter today disclosed that its Chief Operating Officer Adam Bain has quit the company to pursue his own personal ambitions. Bain is widely praised for building a robust advertising business even as the company struggled to earn profits. He will be replaced by Chief Financial Officer Anthony Noto with immediate effect. The end-result of the reshuffle resulted in the decline of 4.3 percent shares in after-hours trading.
To ensure smooth transformation, Bain will report to Twitter for the next few weeks. He will assist the new COO and his team members to make sure that there is no glitch in the working of the company.
Adam Bain exist huge blow for Twitter
According to industry analysts, the move by Bain is a severe blow to the struggling micro-blogging company. Recently, the management has hired bankers to assist in the acquisition but was unable to find potential bidders. Although Salesforce emerged as a bidder in the initial stages, they ruled out from the game stating that Twitter will not be fit for their product range.
Twitter will search for new CFO soon
Anthony Noto, the current CFO will replace Bain. The company added that they will search for a new CFO within the next few days. Noto, who joined in 2014, will be managing the live content business as well as Twitter’s global advertising sales, data and mobile ad exchange MoPub.
Commenting on the development, Wedbush Securities analyst Michael Pachter disclosed that Adam Bain is the most competent person to lead Twitter. The one part of the business that actually worked was the part he works on, which is advertising.
When Bain joined, the company had no significant revenue. But Bain managed to create a robust advertising model, which generated $2.2 billion in 2015, adds Pachter.
In his farewell speech, Bain praised CEO Jack Dorsey and added that he had a great experience with Twitter and has built something which is different. He appreciated the kind of support Dorsey gave to him.
Twitter failed to garner any impact despite trending campaigns
Even though US President-elect Donald J Trump has used Twitter in an effective way throughout the campaign, the social media company failed to make any significant impact. The company is unable to address problems related to abuse and harassment on the platform.
Meanwhile, Twitter has a total user base of 300 million, when compared to 1.7 billion for Facebook. The company went public in 2013 at $26 per share.
Recently, Salesforce.com, Walt Disney Co, and Alphabet Inc seriously considered an acquisition of Twitter. However, these three companies made a decision not to pursue the deal since they are unable to offset the heavy losses.