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Square Says Jack Dorsey Running Twitter Is a 'Risk Factor'

The mobile payments company will soon go public.
October 14, 2015, 8:53pm

Square, Dorsey's mobile payments startup, publicly filed for an IPO on Wednesday. One of its projected risk factors? The fact that its CEO, Jack Dorsey, is also the CEO of another publicly-traded company: Twitter.

"Jack Dorsey, our co-founder, President, and Chief Executive Officer, also serves as Chief Executive Officer of Twitter," the filing reads. "This may at times adversely affect his ability to devote time, attention, and effort to Square."

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Doing double CEO duty was one of the reasons Twitter's board was reportedly hesitant at first about giving Dorsey the top job. However, that hurdle evidently was overcome, and he was granted the position on October 5.

Proud of what @Square stands for: inclusion and empowerment.
— Jack (@jack) October 14, 2015

A similar situation occurred when Tesla Motors

filed for an IPO in 2010

. In its filing documents, however, Telsa did not mention CEO Elon Musk's status as CEO of SpaceX as a risk factor.

Square is expected to trade on the New York Stock Exchange under the ticker symbol "SQ." The exact day that Square will begin trading wasn't disclosed in the filing.

Dorsey being the CEO of Twitter and Square has been discussed at length ever since he was appointed full-time Twitter CEO. "Deion Sanders played in both the World Series and the Super Bowl," investor Keith Rabois told the New York Times. "I don't see any reason why Jack can't do that."

Beyond Dorsey's dual CEO roles, Square also notes that it could be adversely affected by things like wide scale a data breach or new competitors jumping into the mobile payments game.