ask costolo will step down ceo of twitter. very timely that emily chang just talked about this issue. shares are up by about 10%. alix: joe, what do you make of this? haswitter's performance disappointed. it has not seen heavy change much, it looks the same as it did six years ago as facebook and instagram have exploded and gone to new areas. twitter, one of their big shareholders said, there are all these things you can fix. alix: people really didn't like the promoted items in twitter that were popping up. where as with instagram, people were ok with it. >> if you have a pretty picture, people seem more ok with it that. beener and instagram have in that battle. alix: as we see stocks continue to rise, companies really have to find ways to get online growth. the competition has been fierce, but this may not have happened two years ago. >> absolutely, you have to find growth, ways not to disappoint. or maybe you have to cut costs or do something clever with your cash. buybacks, that is why you're seeing more with these compani

dick costolo: right.hings like live, in the moment, this is an amazing thing i'm watching right now, live broadcasting, live video, are going to be the future of the platform. that is the future of the platform. emily: looking at twitter from the outside as someone who was in the c-suites of yahoo!, what is your take on this? tim morse: it's interesting that i happen to be here today . it's a total coincidence. you talk about the rotating ceo's, i was rotating ceo that -- at yahoo!. i think we had five ceo's in the space of a year. these transitions, these dislocations take everybody by surprise. there can be public comments leading up to this that are completely contradictory to what ends up happening. they are tricky things on the inside, but the really important part is now the communication starts. you were just talking about it. you have got to reassure investors, reassure employees most of all. emily: if it is dick's decision why an interim person? why not go out and find somebody? is it really his

costolo at the time. now it's out there and july 1, of course, they transition to the interim ceo mr. dorsey and able to under take a broad ranging search for a full-time successor to mr. costolo who again fact said it's time for him to go. >> yeah, i mean, people and investor haves been calling for his head, david, for quite sometime so it is easy to imagine that he is, in fact, tired at this point. you mentioned before he communicated intentions to the board earlier this year, does that imply that the board actually wanted him to stay on? >> my understanding is that he at least made it clear he was thinking about a departure and mentioned that to the board. i don't believe he made it clear to step down until more recently, and so i do believe, you do wonder whether the board might have been able to perhaps get a beat on this and get a little bit more out ahead of it but clearly, they were, they were at least warned that it might be a possibility. again, based on the conversations i've had with people fa

just in the last hour, dick costolo is stepping down as ceo.ack dorsey stepping in as interim ceo. the stock surging on this news. investors have been calling for costolo to step down for quite some time. we have sarah, who covers twitter. also an early twitter investor. also jim moore, the former cfo of yahoo!. we are still digesting this news. but george, what is your reaction? george: oh my god. emily: oh my god rightis right. you were in the company that evan founded. george: noah founded it and evan become the ceo. jack then became the ceo. then evan reluctantly became the ceo. it has been profiled in a couple books. this is a company of rotating ceos. i am not surprised,, they stumble the exits -- based on all of the exits of others before. based on the people who have exited, there was no other choice to go about to find the new ceo. sarah: i think what we should not be surprised by is the founder. the founder has increasingly had to get involved with twitter over the past year. the founders, evan and jack have been to what is called tee

dick costolo departing july 1.er shares a little off their highs, but popping substantially on this news. what do you make of it? >> obviously, the market wanted to see some definitive change. i don't think it's about selling twitter. i think it's more about let's have somebody in there with a fresh so the of eyes even if it was the guy there before. >> it looks like in an ak filing they named jack dorsy. mr. costolo himself tweeted, naturally, welcome back jack dorsey. named jack dorsey co-founder and chairman of the board to serve as interim chief executive officer. mr. costolo will continue to serve on twitter's board plchlt. mr. dorsey will serve on the square incorporated he was part of the founding group of in 2009. we'll mine this 8-k for any other nuggets. jack dorsey is coming back as ceo, as mr. costolo steps down. though he will remain on the board. >> thank you. julia boorstin just had a discussion with jack. he was asked about twitter. people have been asked about twitter. guy, what do you think this m

costolo so far.his is a company that has a great internet reach, it has a great product, a good application, and they've been at times unable to get out of their own way. so the removal of mr. costolo is obviously good for the stock so far and probably good for the long-term health of the company. i eventually think twitter is going to be purchased, and i think with mr. costolo out of the picture, this opens it up to happening sooner than later. melissa: by what kind of company? >> i think you're looking at a google, potentially a facebook, some strategic alliance that looks to build on the already killer brand they have because that's what twitter has. it just hasn't been able to turn that into true money and, again, i think that's left up to management problems. david: i want to ask charlie about that. have you heard anything from the bankers who are interested in twitter, particularly jamie dimon, about who it might be sold to and what role he might play in that? >> i mean, listen, think of big te

investors have been calling for headllo loss -- costolo's for quite some time.arah frier is with us. ceo, former cfo of yahoo! -- we are digesting this news. what is your reaction? guest: oh, my god. i was an investor in the previous company which became twitter. emily: that is the company that evan founded. founded the company and evan reluctantly became the ceo and when it became twitter, evan was the ceo and then check became the ceo and then evan reluctantly became the ceo. it has been profiled in a couple books. this has been the company of rotating ceos. thenot surprised, based on exits of vps before, there is a joke known as the four-envelope joke, but based on the people was noe exited, there other choice to go about to find a new ceo. emily: is anyone else surprised it is not ed? we should not be surprised by is that it is the founder. the founder having recently had to get involved in dispensing twitter over the past year, the founder is evan jack, they went andugh tee time -- tea time said, listen to jack, we believe in him. they have been trying to i

family: i just asked dick costolo if he had the support of the board. let's take a listen to what he had to say about being a leader. mr. costello: the challenge that we have, the distance between the awareness of twitter and engagement on twitter. i don't get why i would use it, so i don't get what it's for. i deeply feel that the platform is the very best way to connect in real-time to what is happening in your world. amalie: twitter is the very best way to connect to your world. this amazing thing i am watching right now, live broadcasting live video, are going to be the future of the platform. emily: looking at twitter from the outside what is your take on this? guest: it is interesting that i happen to be here today total coincidence. these kinds of transitions, these kinds of dislocations take everybody by surprise and their can be public comments leading up to this that can be completely introductory to what ends up happening. there are really ticked -- really tricky things on the inside but the more important part is now communication starts. yo

you heard the conversation between brad and dick costolo. what do you make of their rendition of the transition of power at twitter? emily: it was interesting. dick confirmed a lot of things we have been hearing, that he started talking to the board about this at the end of last year. what is interesting, it was really the recent board meeting, just a couple weeks ago, where they said this is going to happen. we do not want dick to be walking around with a timer on his head. it was a three-hour conversation where they decided they would announce that dick costolo would be stepping down to conduct a real search. i thought his answer to the question about the search was interesting. they're certainly a perception out here that jack dorsey has the job. but he isrim ceo" going to stay on as permanent ceo of twitter. as well as square. brad asked is this a real search and dick said we are legitimately doing a search, jack is going to allow the space and time. everybody wants to know what kind of person dick costolo would like to see replacing him

emily: dick costolo says he won't get in the way. what that means for the search for twitter's next leader. ♪ emily: i am emily chang. welcome to a special edition of "bloomberg west." we are live in san francisco. investors bet on yahoo!. ceo marissa mayer says her plan to spin off the company's ali baba stake is going according to plan. we will hear from the most innovative entrepreneurs at the bloomberg technology conference. that is all next. we begin with outgoing twitter ceo dick costolo. he spoke to us earlier today just days after his announcement that he is out of the top job at twitter. the stock fell to its lowest point after a fresh analyst downgrade. investors are awaiting any sign of a change in strategy, though costolo didn't indicate that would be the case. he spoke to bloomberg businessweek about what it takes to be a good ceo. >> great ceos are a balance of resilience, gritty and resilient, but self-aware. you have to have that combination. jack is obviously the inventor of the product and co-founder of the company,

before we get to what dick costolo had to say, tell us about the mood. brad: we have had marissa mayer, cisco, conversations about robots, open-source software. people are learning a lot. tell us about the big names and what they had to say. costolo, ceo of ceo, i, the outgoing talked to him about the transition, who the candidates are. whether it is a real search. whether they will give it to jack dorsey. listen to what he had to say. board hase on the recognized that the ceo needs leeway to do what they needs to do.

ceo dick costolo announces he leaves after five years of the comp me.rs wonder if it changes enough to get back on the path to growth. you were on a conference call where there was a lot of confidence coming from the executive. lauren: gas, but it seems like a rehearsed script. that is one of the issues we saw last night. twitter shows down 20% last night. his interim replacement jack dorsey at disguising a weaker user base. >> fundamentally the easier we make it to use and can zoom in and arrived with, the more accessible it is to more and more people. lauren: said that was the talk about trying to get the products better and more accessible to a lot of people. that is also the type that deflated the stock in the after-hours. before before the conference call, shares were rallying and there was laughter in a conference call but not at much. once the ceo is now, the stock is at. i think it could be off a little bit more. sandra: asset today, twitter shares with the recent pretty much flat for the year. >> and they are down 20% since he took over. sandra

and dick costolo. i think alibaba might be interested too. emily: you think facebook, microsoft, they would all by twitter. -- all buy twitter. chris: their shareholders paid a lot of money for. theirld fit into companies without blowing out or competing with something. emily: what about apple? chris: i don't think they care. it is not in their bones, they don't care enough. i think they go in a different direction. they don't care as much about the social elements. i just want to be clear about this, though -- i don't think twitter should sell to them. there is literally unlimited potential in what twitter can build to get to 100 million more people. the stock will, be trading in the 70's, 80's, and 90's. that is what i am not campaigning privately or publicly or its to be sold. i don't see anybody on the board that would block that sale. i think sometimes when of the founder is still running the company, people defer to their judgment. i think you are alleged to be weirder and a bit more eccentric. d

not because i am dick costolo.ave always tried to make sure i have never paid too much attention to the ceo of the year stuff because the worst ceo of the year stuff is right around the corner. i therefore do not get worked up or, frankly, care too much when people say those things. in fact, i have had to make myself care a little bit about them only after i started realizing, oh, it could affect recruiting if people start thinking, i want to go to twitter but what if dick is not there tomorrow and everything changes? i have to make myself pay attention to that and talk to people to bring into the copy about it and say look, that is just not the case. emily: how does not being a founder affect your ability to lead? dick: jack dorsey can sit here and you can ask him, what were you thinking about when you first invented twitter? you cannot ask me that same question, because my answer is i did not invent twitter. you can be a non-founder ceo and have real, thoughtful opinions and even certainty about where something n

do we know why costolo quit? brad: there is what he says -- and i don't have any reason to doubt what he says -- but he was saying that he gave it his all did it for six years, and he told the board of directors at the end of last year that he wanted to start the search for a successor. basically he had had enough. he joined the company as coo. he is an entrepreneur he sold it to google. he took the company public to create a lot of value. but look, the obvious counter narrative is that twitter isn't doing that well. monthly active user growth has slowed, only adding about four users quarter over quarter. 400 million active users of facebook -- users compared to facebook. anna: do we know who was going to see cost low? we know jack dossey is taking back the business, but is he going to stay? i know they are looking for someone else, aren't they? brad: that's right. there is a search committee now. i do think you have to consider jack dossey as a candidate. he has always had a love for twitter, and has come back i

i sat down with billionaire chris sacca just before dick costolo announced he was stepping down. emily: thanks for being here. i hope you don't mind me calling you brash. you just wrote a 8500 word missive about what twitter can be. before we cut to the medicare sponsored scooter -- what is twitter's future? chris: 8500 words sounds like a term paper. i had been invested in and a user of twitter since 2006. i have been obsessed. there have been more than one billion people who have tried it and not stuck around. it needs to be easier and less intimidating for these people. emily: what has been the reaction from twitter? have you heard from dick? chris: no, i haven't heard from him. to be clear, i don't talk to dick that frequently anyway. it is not out of the ordinary for me to not hear from him. i talked to a bunch of other people at the company. it was a well received post that i think, done right, can a set it points wall street in the direction of how you should be evaluating the company. you should not be headhunting the ceo, you should be focusing on these things. if they e

it was sacha who came down, when microsoft revisited it was across from me and dick costolo. think alibaba may be interested, too. emily: you think facebook, google, alibaba, microsoft, they would all buy twitter. chris: all those companies would benefit strategically. they would all be able to explain to their shareholders why they would pay a lot of money for it. and it would fit into their companies without blowing out or competing with something. emily: what about apple? chris: i do not think apple cares. i do not think it is in their bones. i do not think they don't care enough. particularly with apple, i think they go in a different direction. they don't care as much about the human or social elements. i just want to be clear about this, though -- i don't think twitter should sell to them. there is literally unlimited potential in what twitter can build to get to 100 million more people. if they do that, the stock will be trading in the 70's, 80's, and 90's. that is why i am not campaigning privately or publicly for it to be sold. if the board stops believing that at an

twitter shares take flight after di dick costolo quits.says a strong currency is a problem and a lower open as greek debt negotiations stall. >>> a french court is due to deliver the verdict in the trial of dominique strauss-khan on aggravated pimping charges. it comes years after he was accused of sexual assault. let's get to stefen live outside the courthouse. >> hi wilfred. well, the judge started to read the verdict to read out the verdict about 50 minutes ago. it will take time before we know about the fate of dominique strauss-khan. the judge said it was important given the media coverage to be very precise on the reason behind each decision and to repeat for each of the 12 defendants, the background the charges and what was requested by the state prosecutor. two of them already, two defendants cleared by the court behind me and that's exactly what we're expecting for dominique strauss-khan. he always claimed he didn't know that the girls that attended the sex parties to which he attended also were prostitutes. therefore he cannot be

costolo stepping down at twitter.ust two weeks ago kara asked him directly if he was planning to stick around. listen to their exchange for a moment. >> so you'll be there at the end of the year? >> i have to focus on my job and what i've got ahead of me. i don't worry about am i going to be working here on this date or that date. i focus on my job. >> and you feel you're in sync with the board. >> i don't feel like i'm in sync with my board. i know i am. we communicate regularly. i probably overcommunicate with them and we're in sync. >> he told investors there's never a right time to begin a transition. we want to show you what's going on over the past couple of years here. look back at the leadership. there's been a lot of transition and maybe explains a little bit about how they have developed this narrative about how organized it was this time and then evan williams stepped in and kicked out jack dorsey out of that role. someone they trusted. the relationship went sour. this all went down from the height of the f

pimm: what could jack dorsey do dick costello -- costello -- costolo couldn't do?e will help them get money, revenue was not going up, they were not maintaining users, there were problems. jack is a guy and is one of the founders who can say, look, we are going to go here. everyone will rally with him, , whommore, and dick everyone loves, everyone cheered, and it is hard not to love him, but i am concerned that if we keep the same strategy, then that is a bad thing. betty: it is interesting because we saw the flood of tweets after this announcement was made. many of his friends said that dick costolo increased market cap by 24 times, what other seo can boast that kind of record? it is all over the world, but my biggest disappointment with them is that in the old days, i was hoping that's howard lindell was going to -- that going tondell was join, and i asked howard, why don't you? and he said that he wished that tweeze were everywhere, but they weren't everywhere before. i think that is one of the many strategies that twitter should employ. betty: interesting, i do

dick costolo out and jack dorsey in.ive interview in just a few minutes. >> and after we talk to cost low about twitter, we'll check in to see what investors should be doing with the stock. >> and we'll talk to the homp ton -- hampton's super visor. >> this is the june preliminary read on university michigan cinnamon and it came in at 94 .6. that is better than expect bud it is preliminary. it's not the final. last month's final was on the weak side but we started out the year with the strongest read going back to 2004 at 98.1. i'm not sure we garner much information. you hear a lot of chatter in the pits as the ten-year continues to rally. the dow is coming down. back to you. >> thank you very much rick. the top story today, twitter ceo is stepping down. and co-founder and chairman jack dorsey stepping in as interim ceo. shares spiked yesterday after the announcement. this morning up a more modest, let's call it almost 2%. joining us now exclusively is dick costolo twitter's ceo, outgoing, and jack dorsey twitter's chai

as twitter stock soars on the eve of costolo's last day on takeover speculation. that man, bob peck, you see him right there, is here to separate fact from fiction. in the meantime here's what else is coming up on "fast." >> announcer: apple officially pushing play on apple music. but was it enough to keep the street's love affair with the stock holding steady? one of the most closely watched apple analysts weighs in. plus why fast food stocks could hold the key to "fast money." we're grilling up the second half playbook on everything from wendy's to mcdonald's. all that and more ahead on "fast." >>> twitter flying high on another dose of takeover talk just one day before ceo dick costolo gets ready to exit the c suite. suntrust manager has been bob pack has been calling for potential bidders ever since the news on costolo broke. he joins us now. bob, great to have you with us. what's the rumor today and would you say that it has a chance of actually happening? >> yeah. so the stock is up 6% today on rumors that facebook was going to take it over for about 44, $45

dick costolo stepping down as ceo of twitter.nder jack dorsey will return to the role he was pushed out of. costolo's departure will see him leave behind $16 million in stock awards. today, dominic strauss-kahn will learn whether he is found guilty of abrogated -- aggravated pimping charges. they have maintained his innocence from criminal activity, saying he has a right to a private life. 40 minutes into the session, let's get you up to speed. the ftse 100 pulling back in the early hour. the rest still down. the dax also lower, down by 0.5%. the athens stock exchange, there we are, down 4% after rising 8% yesterday. that market closed just before the imf vented their frustration about the lack of progress and major differences between creditors, the imf, and the greek government. have a look at what is going on in the bond markets. an hour and 40 minutes into trading here in europe. the german 10-year up by just a basis point. a clear divergence across the rest of europe. the italian 10-year up eight basis points. likewise in po

a lot of that falls on dick costolo, right?ader of this company while all this turnover is going on. they've said they feel like they have their strongest executive teams that they have right now. that's why costolo is saying it's time for me to step aside. we have all the pieces in place, let's find a ceo who wants to take this to the next level. i think the time something what questionable. obviously twitter's struggled a lot, a lot of pressure from wall street. fact he's stepping down now versus potentially being pushed out in a few months is kind of convenient for him. but, yeah that's been a critique for a long time and they believe that they've kind of shored that up a little bit. now it will depend on who they bring in and if we still see this kind of issue with the new ceo, then we'll know that maybe this is a board issue and not just a costolo issue. >> pleasure to get your views, kurt. >>> continuing on this angle a little bit, talk about more the leadership or perhaps lack of in twitter and bring in the economist, al

costolo, stepping down, he will be replaced by jeff dorsey. and, he lost the presidential election, but mitt romney is still a big republican draw for hopefuls. candidates will be a part city, utah for romney's third annual retreat, bi bringing together politicians and leaders in business. be sure to watch bloomberg television at 5:00 eastern time. shares of twitter are higher this morning after ceo dick costolo's resignation. the company struggling to live up to its hype. costolo will remain on the board of the company and for now will be replaced by twitter cofounder, jack dorsey. let's look at the challenges ahead with david kirkpatrick. david, always a pleasure. what could jack dorsey bring that mr. costolo does not have? david: it is a company that is a little bit directionless at this moment. jack brings the founder vision. at least temporarily. there is a lot of con fusion and myths ofonfusion and the origins of twitter. jack is really be most definitive creator of the product. he may be able to figure out where goes better than others.

she spoke with dick costolo recently. emily, we thank you for that. i want to know from you what this change in leadership has been. jack dorsey coming back in as the interim ceo says about the future of twits part -- twitter's product. emily: a tough year for twitter. dick costolo -- what we are learning now is that he was talking about this idea that he wanted to step out of the role. at the end of the year last year, he was teasing the idea with or numbers. at the last board meeting weeks ago, he said look, i don't want to do this anymore. we have a great team now. i put together a great team that is ready to execute on some of these things and i think it is time for me to step down. i think me being in this position has become a distraction to the copy. jack dorsey, the executive chairman, someone who lives and greece twitter -- brees twitter is stepping back in. listener know why he says he is coming back. >> one of the reasons that i am stepping into this in her role is the belief i have around our direction and our strategy and specifically, ar

twitter ceo dick costolo is stepping down.dorsey, cofounder, will take his place on july 1 until the company can find a permanent replacement. costolo presided over the company's public debut in november, 2013. the stock has declined more than 50% since the end of that year. greece has been told to stop fighting creditors' demands and sign a deal. the eu president said there is no more time for gambling and warns that the game is almost up for greece. that came as the imf team walked out of negotiations. dominique strauss-kahn will learned today whether he's been found guilty of aggravated pending charges. the former international monetary fund chief insists he's innocent and that he's being prosecuted for a swinging lifestyle that is no one else's business. let's get a quick check on the markets. mark, we are talking about zimbabwe. mark: we certainly are. this is an incredible story with numbers that are mind-boggling. the zimbabwe dollar is going to be taken from circulation. what that means is that the central bank of zimb

costolo says leaving was his idea.o: i initiated conversations with the board on ceo succession, and following discussions with the full board at our february meeting and our meeting last week, my decision to step down we agreed is the right time to begin this transition. vonnie: he says twitter is focused on remaining independent but he would evaluate any offer. the chairman of dish network is speaking out on tech issues. bloomberg spoke with charlie ergen. charlie ergen: there are certainly a lot of positives. there are willing participants but they have done a fantastic job in kind of being the upstart company. the team has capture the magic -- the imagination of the public. their network is very similar to our spectrum position. obviously their growth rate, there will be more spectrum. those things make some sense. vonnie: they do not think a deal is imminent. in the nba finals, golden state beat cleveland to tie the series at 2-2. steph curry and andre iguodala each scored 22 points for the warriors. lebron james

dick costolo is out. many investors have called for him to step down for years. and now he has, the stock is up before the bell. jack dorsey will be the interim ceo. jack dorsey has one of the best handles in history. @jack. >> if only i started twitter. >>> disturbing details this morning concerning the murders of a washington, d.c. family held captive in their home. we will tell you what investigators are now revealing about the case next. much check it out. the s6 takes wider selfies that fit everybody. the iphone 6 just cut off nana... nana!? when you do the math,