Twitter CEO Dick Costolo Resigns As Director Of Twitter U.K. After TweetDeck Dissolves As Standalone Business

Posted: May 13, 2013 in Apps, Europe, GT, Social
Tags: , ,

Twitter CEO Dick Costolo has quit his position as a
U.K. director of the company, days after Twitter
subsidiary TweetDeck was dissolved as a separate
U.K. business by business registrar Companies
House, according to Sky News. We’ve reached out to
Twitter for confirmation and comment and will update this story with any response. Costolo stepping back from the U.K. directorship role
appears related to the dissolution of TweetDeck: a
U.K. startup which Twitter acquired in May 2011 for a
price-tag that we reported as $40 million. Late last
year TweetDeck failed to file U.K. accounts with
Companies House, and continued failure to file ultimately led to the dissolution of the company as a
separate entity earlier this month, on May 7. TweetDeck’s failure to file accounts was part of a
process to wind up its status as a separate corporate
entity to its parent company. Earlier this month a
Twitter spokesperson told the Guardian: “TweetDeck
the product continues to thrive as part of Twitter, but
the old company has been dormant for some time, with no outstanding liabilities; hence our agreement
with the move to dissolve it.” Once TweetDeck became a part of Twitter, with
product development and other business processes
moving in-house, there was no longer a need for it to
exist as a standalone business in the U.K. It’s likely,
therefore, that that shift also explains Costolo
stepping back from his U.K. director role. His resignation took place on May 9, according to Sky
News. The news organisation reports that Costolo’s position
has been replaced by a Dublin-based chartered
accountant, Laurence O’Brien. That looks like a clear
sign that Twitter’s main order of business in the U.K.
is now minimising its tax liability, with the
development that was associated with TweetDeck now rolled into its main business. The other two
Twitter U.K. directors, Alex Macgillivray, Twitter’s
general counsel and head of trust and policy, and
chief operating officer, Ali Rowghani, remain in post. Despite TweetDeck’s corporate dissolution and
Costolo stepping back from his U.K. directorship
there’s little doubt that Twitter remains committed to
the product. Although it has recently shut down AIR-
based versions of the Twitter client and shuttered
mobile apps, it is focusing on developing TweetDeck’s web-based apps. Back in
March, Twitter noted that the TweetDeck team has
doubled in size over the past six months. Sky News notes that Twitter controls its U.K. firm
through an Irish subsidiary known as Twitter
International Company Ltd. And while Twitter has
been expanding its staff headcount in its London and
Dublin offices this headcount push is to build a
multinational sales team for Europe, rather than being product development related.


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