The CEO of Twitter and Square is no longer a billionaire as the share price of the payment solutions company drops below IPO.
It has been a rough couple of month for Twitter Inc., the social network website and Square, a payment services company, both run by Jack Dorsey. It’s becoming clearer to the CEO and Co-founder of the micro-blogging site just how difficult it is to become the chief executive officer of a company and run it. The decline in the share price of both the public trading companies affected the wallet of Mr. Dorsey a bit too much than expected.
As the CEO’s wealth was largely tied up with Square’s stock, the payment services organization went below its initial public offering –IPO on Wednesday. Mr. Dorsey, who was once a billionaire has now officially added to the list of the multimillionaires of the world. The net worth of Jack back in September was at $2.2 billion, according to the calculations at Forbes 400 however how his worth has fallen to $944 million. Times have not always been dark for Mr. Dorsey; back in September, 2012 he was on the list of FORBERS Billionaires, according to which the CEO’s net worth back then was $1.1 billion. He has a stake of 3.2% in the networking organization, making him the sixth largest shareholder.
For the first time ever since the payment solutions organization went public in November, 2015 the shares dropped below $9 indicating a drop of 35% since it went public. Subsequently, the social media network also hit its all-time low at the start of 2016, and in a year’s time is down by 57%. After about an hour and a half into the trading session on Wednesday, Twitter stock fell by 6% at $17.39 and Square stock fell by 11% at $8.46.
Additionally, a fake rumor has also surfaced overnight, according to which News Corp, a media giant, was about to buy or had already bought stake in Twitter. Surprisingly, this rumor surfaced on the media company’s own Marketwatch Site. A representative for the company informed Fairfax that this news was in fact untrue and no such stake has been bought or will be bought by the media organization.
This news might not be implausible since the publication giant back in 2005 did invest $580 million on the then social media website, MySpace – which was sold for only $35 million in the year 2011. After this investment the media network claimed that it was a huge mistake on their part.
Jack Dorsey was appointed the CEO of the micro-blogging site on October 5, 2015 after being the interim CEO for four months. He took over from Dick Costolo hoping to work on the user base of the social media.