Twitter market value jumps more than $4 billion on news Jack Dorsey is stepping down as CEO
- Twitter stock jumped as much as 11% on Monday after CNBC reported CEO Jack Dorsey was expected to step down.
- CNBC cited sources in its report about Dorsey, who co-founded the social media platform in 2006.
- Parag Agrawal, who has been Twitter's CTO since 2017, will be the company's new CEO effective immediately.
Twitter stock sharply jumped Monday following a CNBC report that Jack Dorsey is expected to step down from his role as CEO of the social media company. Parag Agrawal, who has been Twitter's CTO since 2017, will be the company's new CEO effective immediately.
Shares climbed as much as 11%, to $52.27, before trading was temporarily halted for pending news. That amounted to $4.2 billion of market capitalization added at intraday highs.
Dorsey also serves as CEO of Square, a payments technology and services company.
CNBC noted Twitter stakeholder Elliott Management last year wanted to replace Dorsey as CEO before the investment firm reached a deal with Twitter's management.
Elliott Management founder and billionaire investor Paul Singer had called for Dorsey to step down from one of his CEO roles, wondering if Dorsey should lead both companies, CNBC said.
Twitter stock pared gains and traded up 3.5% as of 9:52 a.m.