Twitter company ‘no longer exists’; it’s now part of Musk’s X Corp.
Twitter has ceased to be an independent company after merging with a newly formed shell firm called X Corp., driving speculation about what Elon Musk intends for the social media platform.
Twitter “no longer exists” after being merged with X Corp., according to an April 4 document submitted in a California court for a lawsuit filed against the company and its former chief executive, Jack Dorsey, last year by conservative activist Laura Loomer.
It’s unclear what the change means for Twitter, which has seen a sweeping overhaul since Musk bought the company for $44 billion last year. The billionaire owner has in the past suggested that buying Twitter would be an “accelerant” for creating X — which he dubbed an “everything app.” Musk tweeted about the move Tuesday with the single character “X.”
The world’s second-richest man has professed his desire to make X similar to China’s WeChat, a super-app owned by Tencent Holdings that’s used for a wide variety of purposes, such as payments, booking event tickets and messaging. But he’s been vague about how it will fit in with his sprawling business empire, which includes electric car giant Tesla and Space Exploration Technologies, or SpaceX. Musk also owns the domain “X.com” — the name of the online payment company he started and eventually merged with PayPal.
Musk first set up a trio of holding companies in Delaware with a variation of the name “X Holdings” in April last year as part of his takeover bid for Twitter. But X Corp. was set up on March 9 in Nevada, according to records filed in the state. Its merger with Twitter was submitted March 15. Musk is president of the firm and its parent, X Holdings Corp., which was also set up last month and has an authorized capital of $2 million, filings show.
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“Musk could create a parent structure, similar to Alphabet, where he has all his companies,” said Mandeep Singh, analyst for Bloomberg Intelligence. “I don’t see how he can layer e-commerce or payments in Twitter right when larger peers such as Alphabet and Meta have struggled to become an everything app on the consumer side.”
Twitter, which no longer has a team handling media queries, did not immediately comment on questions sent by Bloomberg News. Lawyers for the law firm representing Twitter in the case, Willkie Farr & Gallagher, also did not immediately respond to a request for comment.
The move sparked intense speculation on Twitter about what it meant, with Musk’s tweet attracting more than 13 million views within hours. In Japan, the topic “Twitter Gone” started trending, with users joking that Twitter’s new name will resemble that of a local rock band, X Japan.
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