While Twitter announced the official appointment of Jack Dorsey as 'permanent CEO', the company cancels off the expansion deal with Hudson Pacific Properties at 1455 Market St. in San Francisco, which is the same building that houses Square, a company headed by Dorsey.
Both Twitter and Hudson Pacific declined to comment on the cancelled deal.
It would have been convenient if the Twitter's new CEO didn't have to change buildings in leading Twitter and Square at once. But, Twitter had to pull out from the deal last minute. The deal had been allegedly nearing its final stage. Had it materialized, the social media company will have an additional 100,000 square-feet office.
Twitter currently occupies 760,000 square feet space at 1355 Market. This puts the company at the 3rd spot in the list of technology companies with greatest number of leased square feet in San Francisco. The company's landlord, Shorenstein Properties, spent about $200 million upgrading the property and recently recapitalized the art-deco building for $900 million which makes it one of the most valuable buildings in the city, according to reports in The Registry and Bisnow.
Twitter has experienced a number of executives leaving the company. The social media company's growth is staggering and its stock price is lagging. With a handful of challenges that is needed to be solved, it is but a challenge to Dorsey to innovate and expand the social network in his time as it has lagged way farther from other social networking companies such as Google and Facebook. Other technology companies have been expanding - Uber moving to Oakland, Apple signing a second 'Spaceship' campus.
Meanwhile, the company recently signed a deal of expansion in Dublin, Ireland - one of the overseas den for Technology companies due to low corporate taxes.
What do you think is the reason behind the cancelled deal?