Twitter Inc. is “horribly mismanaged,” and replacing Chief Executive Officer Dick Costolo won’t help, according to Peter Thiel, an early investor in Facebook Inc.
Still, Twitter has potential and may succeed even though it’s dysfunctional, Thiel, a co-founder of PayPal Inc. and Palantir Technologies Inc., said on CNBC. The culture of the company was set by its founders and probably won’t change.
“You’d have to fire everybody and start over,” Thiel said. “It feels like it’s vastly underperforming its potential.”
Management at Twitter, which lets people share 140- character updates, has undergone several changes. Co-founders Evan Williams, Biz Stone and Jack Dorsey are all running new startups. Costolo this year replaced the chief financial officer and heads of consumer product and engineering, and ousted Chief Operating Officer Ali Rowghani. The company has struggled to update its products amid internal bickering.
Jim Prosser, a spokesman for San Francisco-based Twitter, declined to comment on Thiel’s remarks.
Even if Twitter does overcome obstacles, it is unlikely to advance society, Thiel said in an interview with Bloomberg Television’s Emily Chang, noting that Facebook probably won’t either.
“I think the 2,000 or so people who work at Twitter will be gainfully employed for many, many years to come,” Thiel said. “A company like Twitter will not be enough to take our civilization to the next level. A company like Facebook is not enough to take our civilization to the next level.”
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