that is were twitter is that. -- where twitter is asked. -- is at.mily: we are going to continue this conversation after a quick break talking about this dramatic shakeup at twitter. the box ceo aaron leavy will be coming up later in the show. ♪ emily: welcome back to "bloomberg west." we are continuing our breaking news coverage of the big shakeup at twitter. in the last hour dick costolo stepping down as ceo, cofounder jack dorsey stepping in as interim ceo. these stocks surging on the news. still with us is george zachary, also an early twitter investor. we also have a box ceo aaron levie with us and tim morris former cfo and interim ceo at yahoo!. aaron, you are a big twitter user. you've always got some thoughtful things to say about the industry. what do you think? aaron levie: i should clarify for anybody watching, i came on the show to talk about our earnings and this happened jerod -- this happened. i don't know enough to add much value. clearly dick and jack came to a conclusion on what they wanted to do. i think this is probably more of a

alix: back to twitter, does twitter have the upper hand in negotiation power? emily: twitter has a multibillion-dollar business. it has 300 million users. twitter gets a lot of criticism for what it has not become, but i think we should take stock in what has already become. this is a company that has changed the way we communicate. it has changed the way that we do our jobs. and deliver the news. it just bought a company called periscope, a live video company, that could change the way that we do television. that said, twitter has a lot more potential. it certainly has negotiating power in a sense that this is a -- an incredible product. we have a lot to desire, but it is because it is already so good. alix: we are looking at a statement from twitter, it cost a low saying that he is tremendously proud of the team and what they have accomplished. he says that they have great leaders who work well together. a strategy that informs objectives and priorities. he says there is no one better than jack dorsey to lead twitter. there will be a conference call in about

we have sarah, who covers twitter. also an early twitter investor.lso 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 time into the twitter's offices. listen to, we believe -- listen to him, we believe in vision. they have been trying to instill this in dick. but still the questions keep coming. they have actually been talking t

that is were twitter is that.e are going to continue this conversation after a quick break talking about this dramatic shakeup at twitter. the box ceo aaron leavy will be coming up later in the show. ♪ emily: welcome back to "bloomberg west." we are continuing our breaking news coverage of the big shakeup at twitter. in the last hour dick costolo stepping down as ceo, cofounder jack dorsey stepping in as interim ceo. is with us.ry we also have aaron levie with us and tim morris, former cfo and interim ceo at yahoo!. are a big twitter user. you've always got some thoughtful things to say about the industry. what you think? -- what do you think? for anybody watching, i came on the show to talk about our earnings and this happened jerod i don't know enough to add much value. came to ack and jack conclusion on what they wanted to do. this is probably more of a story about wall street possibility to think long-term about high-growth technology companies than it is about anything around twitter's potential. i don't know

twitter. we are sort of digesting this news. george, what is your reaction? george: oh, my god. i was in the previous investment company that became twitter. no actually founded the company and evan reluctantly became the ceo. when it became twitter evan was the ceo and then jack became the ceo and then alan became reluctantly the ceo. this has been a company rotating ceos. so i'm not surprised, based on the exits of all the other vps before. there was no other choice to go but to find a new ceo. maybe they thought we should just handle this on our own after a while. my question, is it dick's decision if they are bringing an interim. 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

emily: do you think google should buy twitter, and do you think twitter would sell to google?s to me the most viable exit option. it needs to do something with social. twitter seems to be the right play. the larger piece. it reminds me of another deal from another era, aol and netscape. you go to a place where you retire peacefully, and soon you are forgotten. emily: is that good for twitter, josh? josh: twitter would need to continue to operate as a mostly independent company, and google would need to kill google plus. they would need to get that product out of the way and put any resources they can into something like twitter, which is thriving in many ways, but it's not growing at the pace like facebook. frankly, it may never get there. twitter is more like a public service then it is a social network, in my mind. emily: what about these other things sacca is talking about, having human editors curate tweets? there are 500 million tweets a day. is it possible for humans to curate that? om: you have to parse what chris is saying. it's an 8500-word memo. if you look at what h

twitter is.s that enough for you? chris: mission statements and taglines usually leave most people feeling empty-handed and directionless. it is a complex product that has to appeal to myriad audiences. i don't think a single tagline is going to do it. emily: you have been waving the pom-pom for nine years. you have a room in your house painted aqua. chris: we have a twitter blue room in the house. twitter has been good to me over the years. emily: why now? chris: why speak up about it now? i think we have the right team. i think dick finally has his squad. emily: why did this publicly? -- why do this publicly? why didn't you pick up the phone and email them? chris: i have. i wanted to take a shot at doing it externally. the audience important for me was those working at the company, not just senior management who have been working there a long time that are just, "yes, yes, yes." if the company starts delivering on it, i think everybody wins. emily: you are not an engineer, you're not a product

, he obviously wrote a very big visionary piece on twitter of where he thinks twitter should go.nk they're looking for that big idea. >> okay. >> with twitter at its current form does not appeal to as many people as they're hoping and to change as many things. >> pete, thank you so much for joining us. >> by the way, jack dorsey has a big interest, 3.3% of the outstanding shares. that's 238 25,000 shares, so he wants this thing to work. >> yeah. we'll be right back . >> all right, recapping, twitter ceo dick costolo stepping down effective july 1st. the stock is bumping after hours, going up. >> that's right, we're awaiting a twitter conference call coming up in 15 minutes light. we're going to have that for you live as soon as it happens as well. lori rothman is here to take you through the next hour of fox business with "risk & reward." no doubt all over this story. >> yeah, indeed, melissa and dave, to reiterate, our breaking news coming out right after the closing bell this afternoon. twitter ceo dick costolo will step down as ceo come july 1st. co-founder, chairman and famil

investors want to know who will be the next twitter at ceo -- ceo over at twitter.sible candidates. twitter executives making it clear whoever steps in has to know how to use twitter and know how to use it very well better than everybody else and use it every day. >> people are media, hollywood, big businesses. one name being mentioned as a twitter insider, adam bain. oversees global revenue of the twitter employees according to people inside the country. the new times reports he has strong relationships with many of twitter's media and advertising. twitter could also make his choice of interim ceo jack dorsey. he fasted not received any compensation. he said that the various first week back in 2006. another potential candidate is added noto with the idea of saving tell "the wall street journal" the wall streets are, goldman sachs doesn't want the job. another name thrown around as a former fox executives who could also be in the running for this one. currently on the board as well. he's seen as one of the most powerful media executives. the portfolio manager tellin

dorsey and twitter.rilled to have brad stone with us and exclusive to "bloomberg surveillance" this morning. this is really important. the work is from ab bernstein. rule one of investment strategy is beware of extrapolating into the future, a strip will simple extrapolation, a complex fundamental effort. have respect for the on for seen. seth masters is the chief investment officer at ab bernstein. we are going to dangerously extrapolate the dow 20,000. we had 4, 5, 6 wonderful years. your research says not so much that it is over but that it is unlikely to continue. seth: i think that is exactly right. we have been discussing the same topic three or four years ago. the dow was around 12,000, and we did not know if we could envision 20,000 for the foreseeable future. it is likely to happen well with the decade. at this point, to me, the question in the next few years is do we hit 20,000, it is how many times do we train through it? tom: exactly. this chart shows what we did at 10,000 as well. we bumped

about twitter deeply.t do you think about the things he's recommending? are they realistic? >> google makes so much sense when you think about twitter. for their business and for twitters. if there is one big take a while -- takeaway from the note everyone is seriously thinking -- what is their long-term plan? google would be a sweet and perfect home for twitter. great search data, all kinds of new search data and user understanding from twitter. twitter gets a place where it will have a safe haven and financial cushion to build their business. emily: do you think that twitter would sell to google? >> that seems to be the most viable exit option from an investment and point. google needs to do something with social and twitter need -- seems to be the right place. logically speaking. it also reminds me of another deal from another area of the internet, aol and netscape. you go to a place where you know, you retire peacefully and soon you are forgotten. emily: is that good for twitter, josh? joshua: the key

twitter shares closed higher. if not decor jacobin who -- not dick or jack, then who should return to twitter? the interview is part of a longer conversation on the aftermath of the ellen pao trial. the first interview given by the firm after the verdict. today i asked about twitter. guest: he has done a fabulous job. they are going to do over $2 billion this year in the course of those five or so years. he took the company value from $3 billion to $24 billion. it is a hard thing to be a ceo of a public company. he had been discussing this for a time. emily: for you consulted? >> and no. emily: what more would you like to see twitter do? guest: i would like twitter to be easier to use for my mom. emily: i agree. i bring up my mom. she is a experienced facebook user but she doesn't get twitter. guest: twitter folks get that. we will see it. i would be surprised if we don't. after we invested in twitter they chose to prioritize their ad serving systems and get the business economically viable. adam dain, mike abbott

dick: the challenge we have is the distance between awareness of twitter and engagement on twitter.hat causes people say, i don't get why i would use it, so i do not get what it is for. i deeply feel that the platform is the very best way to connect in real-time with what is happening in your world. emily: twitter is the very best way to connect your world. dick: right. it is live, in the moment, this amazing thing i am watching right now, live broadcasting, live video, are going to be the future of the platform. i really think that is the future of the platform. emily: they used to be more concerned about how twitter was going to make money. now it is pretty good at making money. dick: in 2009, 2010, 2011, yeah, it is an amazing platform, but there is no way you will ever make money. but that is not a concern. i think we did a really good job proving that wrong. emily: now the concern is about user growth and product innovation. what are you doing to improve the core user experience? dick: for example, when you come to the platform now, and sign up for an account, you no longer hav

dick: this happens to me all the time on twitter. will see something that has been publicly broadcast and we want to have a private conversation. we already know it, it's always cases. one thing i am excited about, super extraordinarily excited about, it is so easy. it will open up all these remarkable avenues for people to feel like they are teleporting into a moment across the world. the longform possibilities are limitless. the shortform possibilities are limitless. i mean, think about ferguson, or occupy central, or the plane in the hudson as now being a live broadcast. i think the next several years ahead of us with that kind of capability is going to be extraordinary, super fun, and develop all sorts of new mediums for performers, for shows, for content. i really do think it will change the entire media landscape. emily: by some measures, one measure, monthly active users, instagram is bigger than twitter. why should wall street believe this is not a plateau? dick: for the simple reason that we all inside the company believe in

box ceo aaron levee tweeting twitter under jack was great, twitter under dick was great and twitter undergood. snoop dog said i'm ready to lead twitter, #snoopforceo. >> you a fan of snoop? >> i'll a big fan. >> what kind of music? >> rap, he's a rap artist there is his stuff there. >> like that. >> sure. >> okay. >> we should note, in fact, let's take a check on twitter's stock in the after hours session, you've been seeing that pop dissipate as we have gone throughout this hour and as we did understand and as investors sort of are starting to digest the fact maus would decline, the stock is up by less than 2% right now. time for the final trade, go around the horn. >> up 2% right now that means it could be red in the morning here. it's disappointing f you're a trader and jump in, you can expect anything happening soon. use $35 stock to the downside if you step in. i'm long, i'm sticking with it. >> brian kelly? >> outside of twitter, these markets are being driven by europe, particularly the eros and against 114, you can be sure the way you do in an equity apart and i say snoop for ceo.

released ajust missive about what twitter can be. what is twitter prosecutor? chris: 8500 words for like a term paper. theve been invested since first time anybody could be invested in twitter. i have been a user since 2006. it's a huge part of my business. there's more than one million people who have tried it and not stuck around. it needs to be easier and work citing a less intimidating for all those people. emily: what has been the reaction from twitter? chris: i have not heard from dick. i don't talk to him that freaked me, anyway. i have talked to a bunch of other people at the company. it was a really well received that done right, sets them up for success. a directiontreet in of this is how you should be evaluating the company. be headbutting the ceo, you should be focusing on these things. if they focus on the stock i laid out there, no one will be asking the question about whether he should be ceo anymore. emily: what should twitter do? chris: it's scary to go out there and tweet your it feels kind of lonely. the need to do a better job of making at t

twitter is also running a vertical outside of twitter, and if you think of all of the twitter verticalsning inside of twitter, you have to consider that. twitter should say, you know what? i am going to go back to that platform. the tweet is something that is special. i assume they should have actually gone after you with the twit.stock i guess they should. [laughter] therd: no they shouldn't, play on the word twit is based on the british word. so muchoward, thank you for joining us, and scott, thank you as well. onto the trade fight on the hill. president obama met with house democrats this morning in a for support.fort we hear the john boehner is saying, vote yes. unlikely ally for president obama, but trying to win support for the trade agreement. you mentioned the surprise visit from the president up your on capitol hill behind closed doors. he made a direct appeal, an emotional appeal, according to some of the lawmakers in the room, but the sense that i am getting is that he is not swaying enough democrats. we will know shortly on the floor of the house, and it could be republicans

twitter leading the way.goes to 39, that could be a bellwether tomorrow, could that lead the parade? >> i don't think so. the problems with twitter haven't afflicted tech stocks and social media. i don't think so. greece is going to continue to dominate the headlines. i'm so sick about hearing about greece, i haven't heard about greece so much since i went drinking with telly savales. that is going to be market moving, i remain cautious overall. charles: who loves you, baby? >> okay. charles: twitter, a big name, the biggest news all week from the market. could that be the thing that could spark this market higher. looked like it wanted to break out today. >> the market does want to go higher. i absolutely see that. we need resolution in greece, greece wants the 1.8 billion euros and don't get it unless they pay. charles: will they get it? all the back and forth. will they get it? >> push comes to shove. i think they do get it. the party of power will agree to the changes, and let's not forget that currently

emily: you released in 8500 word missive about twitter, what twitter can be area -- can be.ore we cut to an ad for a medicaid-sponsored scooter, what is it? >> it sound like a term paper. i have been invested in twitter since you could invest in twitter. i have been a user since 2006. i have been assessed. it is a big part of my business. one billion people have tried it and not stuck around. twitter needs to be more accessible. emily: have you heard from him? >> i have not heard from him. i don't talk to him all that frequently anyway. it worked out. it's not out of the ordinary to not hear from him. i talked to a bunch of other people at the company. it was really well-received. done right, it sets them up for success. points wall street in a direction of, this is how you should be. you should not be headhunting the ceo. you should be focusing on these things. if they execute on the stuff i out, no one will be asking if he should be ceo. emily: what should twitter do? chris: it feels scary to tweet. when you do it, it feels lonely. you need to make it a place where even if

i think google would like to buy twitter. i think they never got social personal identity, real time, or anything, they haven't nailed that. they would not let google go to twitter without putting in a bid. the gold mine has not changed. his perception that twitter is not doing everything they could has not changed. he would love the opportunity to own it and to improve some of the things. you have a user at microsoft who has watched it. when twitter was selling its data, microsoft revisited it was across from me and dick costolo. i think alibaba might be interested too. emily: you think facebook, google, alibaba, microsoft, they would all buy twitter. chris: their shareholders paid a lot of money for it. it would fit into their 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

make it -- you have twitter news twitter sports twitter entertainment.ould also break out some of those into separate apps. that's something that one of the investors talked about. i think we could expect to see it to be made easier to save things that you see in your twitter stream if you want to read them later, like links to articles or videos. then also search. twitter is so valuable for search that they really haven't figured out how to make it that easy to go through search results. >> let me ask both of you the bottom line question for me. in three years will twitter be an independent company? yes or no. >> that's so tough to answer. i must say -- everything that julia said wouldn't necessarily represent a strategy shift. it could just be execution. they've been talking about doing that stuff for a long time. the question is can they actually do it. i think that goes to your question. if they can figure out how to make the right experiments and try all this stuff without it distracting and sinking the company at the same time. they've got a really

twitter, more twitter. the ceo of twitter has stepped down. +++ user growth. businessweek senior writer, brad stone joins us on the phone. read, the two have you on the program. do we know why costolo quit from the company? you were suggesting that this is a man who is entrepreneurial? brad: he toughened up. it is the most stressful job. considering all of the scrutiny on twitter. he claims he has put together a management team that he is comfortable with. he is comfortable with the direction. twitter user growth is disappointing. it pops -- the tops off at 300 million. the question is how this twitter make money? advertisers will come calling when you have an audience. my sense is he was burned out. he saw the writing on the wall they just weren't happy. anna: do we know who is going to succeed jack dorsey? is very since he could stay on? the company is looking externally as well. brad: he runs another company called square. i was looking into that board of directors -- the board of directors, someone with a big background in advertising. twitter's run as an

i want to thank his staff and the people from twitter because there will be a lot of twitter employees coming through here and i think they will realize that their skill sets can be invaluable to people who don't have that surrounding them. and then for the families and kids that are here, it will be a safe place, a free place for them. it will be a very conveniently located space that they can get really adequately prepared before coming to protest against me at city hall. [ laughter ] inform legislators about what their desires are. isn't that the way to do it? i'm glad to see the children and families director here. the more of these types of centers that can be created brings more of the people we need to come together to help each other out. this is in essence what i always felt to be what is the purpose of shared prosperity. those that have something to give and are willing in their hearts to give it can then transfer to something like this to the people who need it and create a space for this to happen and this is not a senseless space. i want to thank twitter financial for that

emily: is google writing twitter realistic? -- google buying twitter realistic? speculation has been going on about this for years. chris: the board doesn't have anybody that wants to be in it forever. nobody owns 80% of the stock or could block a deal like that. -- 50% of the stock. i think google would like to buy twitter. i think they never got social personal identity, real time, or anything, they haven't nailed that. google go tot let twitter without puttingi n in a bid. changed.mine has not his perception that twitter is not doing everything they could has not changed. he would love the opportunity to own it and to improve some of the things. you have a user at microsoft who has watched it. its twitter was selling data, microsoft revisited it was across from any and dick costolo -- from me 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. e

investors want to know who will be the next twitter at ceo -- ceo over at twitter. possible candidates. twitter executives making it clear whoever steps in has to know how to use twitter and know how to use it very well better than everybody else and use it every day. >> people are media, hollywood, big businesses. one name being mentioned as a twitter insider, adam bain. oversees global revenue of the

one headline said twitter is killing twitter to save twitter.: i think that is a little extreme. twitter has been a transformative media company since the beginning. i think they are really starting to own that identity with project lightning. for me, twitter is hugely important during live events. i think everybody looks at twitter as a second screen sometimes maybe even a first screen during those types of events, and this is a great way of organizing that content. emily: the problem is some of that content is still hard to find for even power users. nathan, what do you make of this shift? they are talking about potentially bidding on the rights to stream the first ever streamed nfl game. that is a big deal. that is bound to be a big change in their strategy. nathan: it is a major move and a significant one. who knows how sincere that bid actually was? i do think in terms of positioning they really wanted to show they are sincere about capturing audiences around live events and live events being so important for them as a lot of their content

are on twitter.y value in this platform. and i think that the engagement fact that all of these conversations are happening publicly. that is what makes twitter great. we look back to like the ran spring all of that stuff was towered by twitter and by social media and so ting that they really just need to look at what has made this company so great to date? and maybe we need to inviet people back in with open arms and figure out how to third parties create a real partnership and ecosystem where twitter can generate more revenue so can those partners. >> beaters come up with answers because that stock is right now virtually flat which implies investigators are skeptical. ted murphy everyone. thank you indeed for joining us we do appreciate it. thanks ted. i have fresh tape arrived from capitol hill this is the president arriving and his president obama arriving, now this is unusual. you think we have to mac the point here not every day that president obama visits capitol hill. in fact it is not every

get in touch with us by e-mail, worldwide@cnbc.com twitter twitter @cnbcwex. interestingly enough you may believe it or not but some have come to say that they would like the top job at twitter including snoop dogg. that's right. head to our website to get the full story on snoop dogg and why he wants to be the ceo of twitter. >> indeed. now let's move on. greek debt discussions took a turn yesterday. the team returned to washington despite the need to unlock aid before the end of the month. this comes as a report says the german government is holding talks on what to do in the event of a greek bankruptcy. the greek prime minister said the battle with creditors was continuing. >> we are fighting in these negotiations and as long as the greek people support the efforts of our government the government will be holding the demands of the greek people. in order to have a deal that won't just be a deal but a solution to maintain social cohesion. it will give development perspective and at the same time be a financial solution in the midterm for the country. >> over

he was asked about twitter. people have been asked about twitter.what do you think this means for twitter? how would you trade the news? >> stay long against $35. i think it's unfortunate. i'm not comparing twitter with facebook. i want to make that point. i will make this comparison. in 2012 if you recall, everybody categorically was calling for the head of ceo mark zuckerberg. i think this is growing pains with twitter. i think if he remained there, they would have figured this out. he is a smart guy. it's unfortunate. the stock against $35 with this news is probably interesting on the long side. >> i understand we are speculating. how does this affect their future as a stand-alone company versus making it would be a good fit for google? >> google stock hasn't done much easier. it would make a lot of sense. before their ipo, i thought twitter made perfect sense for apple. maybe it still does. i don't know. i think it probably puts them on the block. with that said you might see it and see this rally in the stock, a commesurate move to the upside t