Sorry, But Twitter's CEO Is Full of Crap
NEW YORK (TheStreet) -- All that was missing Thursday morning from the Twitter
They acted like rock star-obsessed groupies from the depths of 1985, fawning over Jack Dorsey and Dick Costolo. One of the few guys with the guts to break away from the pack and throw water on the euphoric fire was TheStreet's Jim Cramer.
As practically every single media personality in America tripped over his brother to scream Twitter IPO Pops 73% in NYSE Debut, Cramer urged caution. I laud him for that. It took a lot of guts to do it when the men of the hour -- Dorsey and Costolo -- were within earshot. Goodness forbid they heard what he had said. He might not have been invited backstage and to the after party.
It's that media vacuum at play again with Twitter. I love Twitter as much as the next guy -- and use it more than most -- but I'm unwilling to give the company, particularly its two most visible spokespeople, a free pass thanks to an odd school-girl crush.
Remember, Dorsey's the guy who told us, in April, that Twitter is "not even thinking about" an IPO right now.
Costolo is the one who, in August, was reportedly telling bankers he wanted to keep Twitter's IPO "low profile."
The bankers (and the media) won that round!
When Dick Costolo tells CNBC, in response to a strong line of questioning from Cramer ...
I'LL SAY THIS. BECAUSE OUR AD UNIT IS CONTENT FIRST, THE ADVERTISER TWEETS IT OUT ORGANICALLY TO THEIR OWN FOLLOWERS. IT GOES OUT FOR FREE TO THEIR FOLLOWERS AND THEN THEY CAN MAKE IT AN AD. THEY'RE PARTICULARLY RESILIENT TO BEING, FRANKLY, SPAMMY ADS. BECAUSE THEY DON'T WANT TO SEND SOMETHING ANNOYING OR INTERRUPTIVE TO THEIR OWN USERS. SO THE FACT THAT IT IS CONTENT FIRST AND THEN MADE INTO AN AD, MAKES, I THINK, OUR PLATFORM PARTICULARLY RESILIENT AND SUITABLE TO THE MOBILE ADVERTISING PLATFORM
(Caps preserved from original CNBC interview transcript).
Are you going to take it at face value?
First of all, "I'll say this" is another way of saying, "Jim, I don't have a good and/or direct answer for your question, so ... I'll say this."
Second, Dorsey says Twitter wasn't thinking IPO and, poof, a few months later the company had to go public before the end of the year to preserve "secret filing" status. Things must move faster in Silicon Valley than this laid back Southern Californian (that's me) thought.
Third, "I'll say this" went from wanting a "low profile" IPO to accompanying an entourage onto the NYSE floor Thursday morning. If it was so important to fly under the radar, why didn't he stay in San Francisco? I'm not sure if that would have been unprecedented, but it was certainly possible. These Silicon Valley dudes are rule breakers anyway, aren't they?