Twitter Inc. has ceased to be an independent company after merging with a newly formed shell firm called X Corp.leading to speculation about what Elon Musk intends for the social media platform.
Twitter “doesn’t exist anymore” after merging with X Corp.According to a document filed on April 4 in a California court over a lawsuit brought against the company and its former chief executive, Jack Dorsey, last year by conservative activist Laura Loomer.
It is not clear what does the change mean for Twitter, which has seen a radical overhaul since Musk bought the company for $44 billion last year. The billionaire owner has suggested in the past that buying Twitter would be an “accelerator” to create X, which he called an “everything app.” Musk tweeted about the move on Tuesday with the single character “X.”
The second richest man in the world has professed his desire to make X similar to China’s WeChat, a Tencent-owned super app used for everything from payments and event ticket reservations to messaging. But you’ve been vague about how it will fit in with your extensive business empirewhich ranges from the giant of the electric cars Tesla hasta Space Exploration Technologies. Musk also owns the domain “X.com”, the name of the online payment company that started and eventually merged with PayPal.
Musk first established a trio of holding companies in Delaware under a variation of the name “X Holdings” in April of last year as part of its takeover bid for Twitter. But X Corp. was established on March 9 in Nevada, according to records filed with the state. His fusion with Twitter It was filed on March 15. Musk is president of the firm and its parent, X Holdings Corp.which was also created last month and has an authorized capital of $2 million, the documents show.
“Musk could create a matrix structure, similar to Alphabet, where he has all his companies,” said Mandeep Singh, an analyst at Bloomberg Intelligence. “I don’t see how you can overlay e-commerce or payments on Twitter right when bigger pairs like Alphabet y Meta have struggled to become an app of everything on the consumer side.
Twitter, which no longer has a team that handles media inquiries, did not immediately comment on questions submitted by Bloomberg News. Attorneys for the law firm representing Twitter in the case, Willkie Farr & Gallagher, also did not immediately respond to a request for comment.
The measure caused intense speculation on Twitter about what it meant, with Musk’s tweet drawing more than 13 million views in a matter of hours. In Japan, the theme “Twitter Gone” began to trend, with users joking that Twitter’s new name will resemble that of a local rock band, X Japan.
