Simon Ateba is Chief White House Correspondent for Today News Africa covering President Joe Biden, Vice President Kamala Harris, U.S. government, UN, IMF, World Bank and other financial and international institutions in Washington and New York.
Elon Musk made a significant announcement on Friday, revealing that Linda Yaccarino, the former head of advertising at NBCUniversal, will be the new CEO of Twitter.
Musk took to Twitter to express his excitement, stating, “I am excited to welcome Linda Yaccarino as the new CEO of Twitter! @LindaYacc will focus primarily on business operations, while I focus on product design & new technology. Looking forward to working with Linda to transform this platform into X, the everything app.”
Yaccarino’s appointment comes after her resignation from NBCUniversal, which was announced shortly after Musk’s tweet. The unexpected news caught many by surprise, as Yaccarino’s departure as the Global Chairman of Global Advertising and Partnerships at NBCUniversal was confirmed by the company.
Rumors surrounding Yaccarino’s potential role as CEO of Twitter gained momentum following a cryptic tweet from Musk, hinting at the hiring of a woman for the position. Their collaboration became more apparent during a recent interview they conducted at an advertising event in Miami, where discussions about Yaccarino’s potential role as CEO took place.
Musk’s consideration of appointing a CEO for Twitter traces back to December, when he faced criticism for his management decisions regarding the platform. To gather public sentiment, Musk conducted a Twitter poll, vowing to respect the outcome, which asked whether he should step down as the company’s head.
While Yaccarino assumes the role of CEO, Elon Musk will maintain full control as the owner of Twitter. Since acquiring the platform for $44 billion in October, Musk has implemented significant changes, including a substantial reduction in the workforce by over 75%, the introduction of new leadership, and strategic shifts. Additionally, Musk has pursued the privatization of Twitter, freeing himself from the obligation to disclose corporate information to the public.
The new CEO will face various challenges at Twitter, with the decline of the platform’s advertising business being a pressing issue. Historically, advertising has been the main revenue source for Twitter, but it has faced a significant downturn. This challenge is further complicated by annual debt payments of around $1.5 billion resulting from Musk’s acquisition. Musk revealed a concerning 50% decline in ad revenue during a March investor conference, raising concerns about the overall financial stability of the platform.
The advertising struggles can be attributed in part to the broader economic downturn and uncertainties within the industry. Advertisers have also expressed unease about Musk’s lenient approach to content moderation on the platform. Brands typically prefer to avoid associating their ads with toxic or inappropriate content, leading one of the world’s largest advertising companies, IPG, to advise its clients to temporarily suspend their spending on Twitter due to concerns about content moderation.
In a recent interview with the BBC, Musk mentioned that the majority of Twitter’s advertisers have returned, indicating a potential recovery in that aspect.
If Linda Yaccarino assumes the position of CEO, she would bring a wealth of experience and industry connections to Twitter. Her successful career at NBCUniversal has allowed her to establish relationships with numerous CEOs of advertising holding companies, a vital group for Twitter’s success. Yaccarino has spearheaded significant marketing partnerships, played a pivotal role in NBCUniversal’s streaming initiatives, challenged outdated industry practices, and driven advertising sales to exceed $100 billion. She is also a prominent figure at esteemed advertising events such as the Cannes Lions festival.
These discussions surrounding the Twitter CEO position come at a critical moment for Yaccarino, as she was scheduled to address NBCUniversal’s key clients during the upcoming upfronts—an annual pitch aimed at attracting advertisers.