Jack Dorsey is reportedly stepping down from his position as Twitter CEO [Update]

Update on 08:50 PST:

Jack Dorsey has announced that he is stepping down from Twitter with Parag Agrawal taking over the role as CEO immediately and Dorsey serving the remainder of the term on the board until "May-ish" to assist with the transition. You can read the full letter of resignation in the below tweet.

As pointed out above, Parag Agrawal, who is Twitter's Chief Technology Officer, will take over his position, as announced by the company.

The original article continues below:

Jack Dorsey will be stepping down from his role as the Chief Executive Officer of Twitter, according to CNBC. The company's major stakeholder, Elliott Management, was seeking to replace Dorsey as CEO last year which was stalled since the firm reached a deal with Twitter's management.

Paul Singer, who is also a key stakeholder for Twitter, along with Elliott Management was wondering whether or not Dorsey should hold the position of CEO at both Twitter and Square, a digital payments company. The investors wanted Dorsey to step down as CEO in either one of the firms due to reputational risks.

Dorsey was grilled in an October 2020 Congressional hearing about Section 230. Section 230 is a law that shields tech platforms from being liable for the content they post online. Congress raised questions over alleged anti-conservative bias on internet platforms. The hearing came after Twitter banned a New York Post article that showed connections between now-President Joe Biden's son and Ukraine. This made many conservatives angry who consistently tout that social media platforms silence them.

Twitter's stock went up by more than 5% for a brief period of time, upon the news.