Elon Musk surprises industry by announcing on Friday that Linda Yaccarino, a seasoned media executive, would be the new CEO of Twitter, fulfilling his promise to step back from the role.
In a tweet, Musk expressed his excitement about Yaccarino joining Twitter as the CEO. He mentioned that she would primarily focus on business operations while he would concentrate on product design and new technology.” This could be rephrased as, “In a tweet, Musk expressed excitement about Yaccarino becoming the new CEO of Twitter. He explained that her primary focus would be on business operations, while he would concentrate on product design and new technology.
Earlier on the same day, Yaccarino declared her departure from the position of chairman of global advertising and partnerships at NBCUniversal.
Yaccarino stated, “It has been an absolute honor to be part of Comcast NBCUniversal and lead the most incredible team. We’ve transformed our company and the entire industry.”
Yaccarino’s appointment as CEO brings her face-to-face with numerous challenges that have accumulated during Musk’s tenure, including an exodus of advertisers, service disruptions, regulatory scrutiny, and an expanding list of competitors. Moreover, Musk’s controversial policy changes and statements have alienated some longstanding Twitter users.
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Although Musk is stepping back from the CEO role, he is expected to maintain significant control over the company’s future direction.” A better wording could be, “Despite stepping back from the CEO role, Musk is expected to retain significant influence over the company’s future direction.
Yaccarino’s background as a media executive diverges from Musk’s clashes with mainstream media outlets and his aversion to advertising.” This could be rewritten for clarity as, “Yaccarino’s experience as a media executive is a departure from Musk’s frequent clashes with mainstream media and his known aversion to advertising.
With over 11 years at NBCUniversal, Yaccarino returned to the company where she began as a college intern.” A clearer phrasing could be, “Having spent over 11 years at NBCUniversal, Yaccarino returned to the company where her career first began as a college intern.
At NBCUniversal, Yaccarino oversees a global team of 2,000 members, a larger workforce than the remaining staff at Twitter, which Musk revealed in an interview with the BBC last month had been reduced to 1,500 people after multiple layoffs.
Yaccarino’s notable achievement at NBCUniversal was the creation of unified ad sales teams, streamlining the approach to advertisers by eliminating the complexity of dealing with 15 different sales teams.
NBCUniversal, facing a decline in ad revenues like many other media companies, will be making upfront presentations to advertisers next week in an attempt to secure ad commitments for later in the year.
Yaccarino would not be the first woman to run one of Musk’s companies. Gwynne Shotwell currently serves as the president and COO of SpaceX, while Musk holds the CEO title. Robyn Denholm also serves as the chairman of Tesla, taking over from Musk when the SEC required him to step down following a tweet about securing funding to take the company private.
Twitter has witnessed an exodus of advertisers since Musk acquired the company in October. Ad sales accounted for over 90% of Twitter’s revenue before Musk’s purchase, but many advertisers have withdrawn from the platform.
Concerns over Musk’s staff reductions, the rise of hate speech, and controversial policy decisions have contributed to the loss of advertisers. Musk attributed the exodus to “activist groups pressuring advertisers,” although there have been no substantial changes in content moderation.
To boost revenue, Musk has attempted to strengthen Twitter’s subscription business and introduced charges for blue checkmarks that verify a user’s identity, albeit with limited success. Consequently, he may need to revive Twitter’s relationships with advertisers and reinvigorate its core advertising business.
Musk’s interest in Twitter has raised concerns among Tesla investors, who worry that his focus on the social media platform could divert attention from the challenges faced by the electric automaker.
The announcement of a new CEO for Twitter came shortly before Tesla’s annual shareholder meeting scheduled for Tuesday. Tesla’s stock price has fallen 55 percent in the past 13 months since Musk disclosed his initial purchase of a 9% stake in Twitter. However, Tesla’s shares saw a 3% increase in early trading on Friday, only to lose most of that gain later.
Dan Ives, an analyst with Wedbush, wrote in a note to clients on Friday that Musk leaving the CEO position at Twitter earlier than expected is a positive development for both Tesla and SpaceX. He believes that Musk needs to dedicate more time to these “golden child platforms” rather than Twitter.
The news of a new CEO for Twitter is also likely to be welcomed by its users. Last fall, Musk pledged to find a new CEO for the platform after a Twitter poll he conducted revealed that 57% of participants believed he should step down from the role. In December, he humorously vowed to name a replacement “as soon as I find someone foolish enough to take the job!”