Here's a Huge Update on Twitter's CEO Search

NEW YORK (TheStreet) -- If you want to know how Twitter's (TWTRsearch for a new CEO is going, you'll need more than 140 characters.

In a press release, San Francisco-based Twitter announced it had hired Spencer Stuart, a global executive search firm, to help it find a replacement for CEO Dick Costolo, who is set to leave his post on July 1.

A key passage from the release:

The Committee will only consider candidates for recommendation to the full Board who are in a position to make a full-time commitment to Twitter. The search is proceeding with a sense of urgency but the Committee will take the time necessary to find the right CEO to lead the next phase of Twitter's growth.

Peter Currie, Twitter's Lead Independent Director and Chair of the Search Committee, said, "The Board has the utmost confidence in the strong management team Dick has assembled and in Jack Dorsey's ability to lead the company on an interim basis while we identify a permanent CEO. We are confident in Twitter's product roadmap and excited by the current pipeline. We also believe much more can be done to realize Twitter's enormous unmet long-term potential. In our next CEO, we are looking for a bold thinker and proven leader capable of helping Twitter fully capitalize on its unique platform for the benefit of users, advertisers and employees, and to maximize value for investors in the years ahead."

The first paragraph seems to imply that interim CEO Jack Dorsey may not get the job. Dorsey, who co-founded Twitter nearly seven years ago, is also the CEO of Square, a San Francisco-based payments company. Square is reportedly looking to go public soon, which could leave investors troubled by the fact one person may run two publicly traded companies.

Last week, Dorsey, who is also chairman at Twitter, told Re/Code that he was not leaving Square. "As I said last week, I'm as committed as ever to Square and its continued success," Dorsey said in a statement to the tech-based publication. "I'm Square CEO and that won't change."

TheStreet's Jim Cramer noted it was likely that Dorsey would not take the top spot at both companies. "It was pretty clear from the get go that the government would have problems with Dorsey running both Twitter and Square as Square is coming public." Cramer said. "The bankers knew this and so did the Square insiders. The SEC never wants to see a company come public with a CEO that has divided duties. Many outsiders disagree that the SEC played a role. I can tell you that the insiders feared the SEC holding up the deal."

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Dorsey and Square couldn't immediately be reached for comment on this story.

Earlier this month, Costolo said he would resign effective July 1, noting he first had discussions with the company's board regarding a CEO transition last year. Talks escalated last week at Twitter's board meeting. Dorsey said there was no timetable for finding a new CEO, noting it had employed a search firm to find the right person to lead the company.

Twitter and, specifically, Costolo, have come under intense scrutiny in recent months since going going public in November 2013. The company has been plagued by ineffectively communicating its strategy to investors, who are unhappy with the lack of user growth Twitter has experienced in recent quarters. Investors, most notably Chris Sacca, have recently criticized the company and laid out their own plans for how it should proceed.

The latest misstep for the micro-blogging social network was the scraping of Twitter's investor relations site by data-mining firm Selerity, which caused Twitter's first-quarter earnings results to be leaked prior to the market close last month. The company said it missed revenue and earnings estimates due to problems with its direct response advertising business. 

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