It is the end of the road for Twitter Inc. as the company has been merged into X Corp. The app will now be managed by the parent company, owned by Elon Musk. The acquisition took place in the month of March.
The development came to public light owing to a lawsuit filed against Twitter by a woman named Laura Loomer. The court documents revealed that Twitter Inc. no longer exists as it has been absorbed into X Corp. But what exactly is the X Corp, and how will its acquisition of Twitter impact the platform? Read on to find out.
Twitter Merges with X Corp
The news of Twitter’s merger into X Corp was revealed on Monday by conspiracy theorist and former congressional candidate Laura Loomer. She had filed a lawsuit against Twitter and its former CEO Jack Dorsey for banning her account from the platform. However, the court filing on April 4 revealed that Twitter, Inc. “has been merged into X Corp. and no longer exists.”
A day later, on Tuesday, Elon Musk tweeted the letter ‘X’ and seemingly confirmed the takeover. However, there do not seem to be any plans to change the name of Twitter. The platform will keep functioning just as usual for now.
— Elon Musk (@elonmusk) April 11, 2023
What is X Corp?
X Corp is a corporate firm owned by Elon Musk. It is headquartered in San Francisco, California, the same place where Twitter has its headquarters. X Corp is, in turn, owned by X Holdings Corp. The company was formed on March 9 in Nevada, and its acquisition of Twitter Inc. took place on March 15.
“X Corp. is a privately held corporation, incorporated in Nevada, and with its principal place of business in San Francisco, California,” says another lawsuit filed by two Florida attorneys whose accounts were also banned from Twitter. The corporation reportedly has an authorized capital of $2 million.
X Corp is Musk’s ambitious project, with which he wants to create an ‘everything app.’ On several occasions in the past, the billionaire has expressed his interest in creating a one-stop platform similar to WeChat in China. His acquisition of Twitter last year was also ‘an accelerant to creating X,’ revealed the tech mogul.
“Twitter probably accelerates X by 3 to 5 years, but I could be incorrect,” Musk tweeted in October 2022. X Corp joins the list of companies owned by the business magnate, including Tesla, Neuralink, SpaceX and The Boring Company.
Musk Acquired Twitter for $44 Billion Last Year
The microblogging platform, which was founded by Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams in 2006, was bought by Musk for a whopping $44 billion in October last year. Following the acquisition, the top executives and the majority of the staff were fired from the company.
Ever since, Twitter has been struggling to keep its user base, who are unhappy with the change in policies and the new paid subscriptions on the app. The platform is now valued at just $20 billion, Musk recently announced to his employees.
For more news and updates, keep watching this space.