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Commencement will take place on May 4 at Michigan Stadium and during the ceremony Costolo, a U-M alumnus, will give the keynote address and receive and honorary Doctor of Laws degree from the university.
Costolo last visited campus in November 16, when he gave a talk about his experience as the top executive of one of the most popular social media companies in the world.
During that talk, Costolo told a packed audience at Rackham Auditorium that "it only makes sense to do what you want to do and what you're passionate about."
U-M officials began forging a deeper relationship with Costolo when a group of communicators visited Twitter's California office in the fall of 2012 to talk with Costolo and other Twitter leaders about how to maximize U-M's presence on Twitter.
From those discussions, the student-led @UmichStudents account was born. The university-sponored account has a different student tweeting each week so followers can get a sense of what it's like to be a student at the Ann Arbor school.
Costolo graduated from U-M in 1985 with a computer science degree and was a member of the Phi Gamma Delta fraternity.
Costolo, who has worked for Google, as an entrepreneur and been a stand-up comedian, first joined Twitter in 2009 as the company's chief operating officer. In 2010 he became CEO of the San Francisco-based company.
William K. Brehm, a dedicated U-M donor and co-founder and former executive chairman of SRA International Inc., an information technology and strategic consulting firm, will also receive an honorary degree during commencement, as will biographer and historian David McCullough and economist Jeffrey D. Sachs. Former U.S. Representative Dale E. Kildee, businesswoman and scholar Rosabeth Moss Kanter and dancer Suzanne Farrell will also receive honorary degrees.
U-M's governing board is expected to approve the commencement speaker and honorary degrees during a public meeting on Thursday.
Recent spring commencement speakers include CNN medical correspondent and neurosurgeon Sanjay Gupta, Gov. Rick Snyder and President Barack Obama.
Kellie Woodhouse covers higher education for AnnArbor.com. Reach her at kelliewoodhouse@annarbor.com or 734-623-4602 and follow her on twitter.