Peter Thiel, the co-founder of Paypal Inc. and a former Facebook Inc. investor has said in an interview that there is probably “a lot of pot-smoking” going on at Twitter Inc (NYSE:TWTR), and that’s why it’s “horribly mismanaged.”
“Twitter is hard to evaluate. They have a lot of potential. It’s a horribly mismanaged company – probably a lot of pot-smoking going on there. But it’s such a solid franchise it may even work with all that,”
Thiel said in an interview.
Financial markets show that Twitter Inc (NYSE:TWTR) managed an excellent second quarter, outperforming market expectations and forecasts.
As for Thiel, that’s not a reason to celebrate. Thiel, who is also the founder of Palantir Technologies Inc., said that Twitter Inc (NYSE:TWTR) has a huge growth potential and can succeed, except for it’s horrible management that renders the company dysfunctional. Thiel went further to say that even firing Dick Costolo, Twitter Inc.’s Chief Executive Officer, will not make any difference.
“You’d have to fire everybody and start over,” Thiel explained. “It feels like it’s vastly underperforming its potential.”
The iconic investor specifically said that it’s the founders of Twitter Inc (NYSE:TWTR) that have created the underperformance culture in the company, making it very hard to change by simply firing the CEO. Thiel also pointed out that there is a lot of internal squabbling in the management of the company with co-founders of the San Francisco-based microblogging company running their own startup businesses.
Thiel’s comments attracted reactions from different quarters with an early Twitter Inc (NYSE:TWTR) investor, Bijan Sabet, saying that
“I’ve never met Peter but his is so nasty, silly and wrong.”
Twitter Inc’s spokesperson declined to make any comment on the matter.
This article has been written by Victor Ochieng.