Jack Dorsey’s Got Much to Handle as CEO of Twitter and Square
Jack Dorsey might just have too much to handle being the CEO of Square, the mobile payments company and Twitter both.
Last Monday, as pressure came from the investors, Dorsey accepted to be Twitter's CEO and decided that there was a major requirement of restructuring. He announced layoffs and cost cutting at the company. On the other hand he was preparing Square for its IPO.
The time is just not right, as the market is volatile and economies are shaky, the IPOs are facing stiff competition and Dorsey has much to prepare for. The company is scheduled to offer its IPO on Wednesday.
However, the IPO is not the only concern for the company there are other challenges too as the startup is losing money. Square is valued at close to $6 billion.
The role of Dorsey in two divergent companies is a risk and in a filing with the Securities and Exchange Commission Square noted "This may at times adversely affect his ability to devote time, attention and effort to Square."
Recently some of the companies delayed their IPO and some cut down the price. Kathleen Smith, an IPO expert and principal of Renaissance Capital in Connecticut said, "It's a very tough time and particularly it has not been a very receptive time for technology IPOs."
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