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.
Linda Yaccarino, the head of advertising at NBCUniversal, has resigned amid reports on Thursday that she had been handpicked by Elon Musk to become CEO at Twitter.
The news of Yaccarino’s departure from NBCUniversal was swiftly announced, catching many off guard, as it came just hours after revelations about Musk’s decision to bring her on board as the chief executive of the popular social media platform.
Yaccarino’s resignation as the global Chairman of Global Advertising and Partnerships at NBCUniversal is effective immediately, NBCUniversal said in a statement.
Speculation about her potential appointment as CEO of Twitter gained momentum following a cryptic tweet from Musk, suggesting the hiring of a woman for the position.
The collaboration between Yaccarino and Musk became apparent during a recent interview they conducted at an advertising event in Miami, where discussions regarding her potential role as CEO took place.
Musk’s contemplation of appointing a CEO for Twitter dates back to December, a period when he faced criticism for his management decisions regarding the platform. In a bid to gauge public sentiment, he conducted a Twitter poll, pledging to abide by the outcome, asking whether he should step down as the company’s head.
While a new CEO takes the helm, Elon Musk will remain firmly in control as Twitter’s owner. Since his acquisition of the platform for a staggering $44 billion in October, Musk has initiated substantial changes, including a significant reduction in the workforce by over 75%, the introduction of fresh leadership, and strategic shifts. Moreover, Musk has maneuvered Twitter toward privatization, freeing himself from the obligation to disclose corporate information to the public.
The incoming CEO will face a myriad of challenges at Twitter, with the most pressing being the decline of the platform’s advertising business, which has historically served as its primary revenue source. This challenge is compounded by annual debt payments of approximately $1.5 billion resulting from Musk’s acquisition. In a March investor conference, Musk disclosed a concerning 50% decline in ad revenue, raising concerns about Twitter’s overall financial stability.
Twitter’s advertising woes can be attributed in part to the broader economic downturn and industry uncertainties. However, advertisers have also expressed unease about Musk’s lenient approach to content moderation on the platform. Brands generally prefer not to have their ads associated with toxic or inappropriate content, leading IPG, one of the world’s largest advertising companies, 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, suggesting a potential recovery in that aspect.
If Linda Yaccarino is appointed as CEO, she would bring a wealth of experience and extensive industry connections to Twitter. Her illustrious career at NBCUniversal has afforded her the opportunity to cultivate personal relationships with numerous CEOs of advertising holding companies, a critical group for Twitter’s success. Yaccarino’s contributions to the advertising world include spearheading significant marketing partnerships, playing a pivotal role in NBCUniversal’s streaming initiatives, challenging outdated industry practices, and driving advertising sales to exceed $100 billion. She is also a prominent figure at esteemed advertising events like the Cannes Lions festival.
These discussions surrounding the Twitter CEO position arise at a pivotal moment for Yaccarino, as she was slated to address NBCUniversal’s key clients during the upcoming upfronts—an annual pitch aimed at attracting advertisers.
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