Elon Musk, known for his fascination with the letter X, is making a bold move by phasing out the Twitter brand and its iconic blue bird logo in favor of X. This decision is part of Musk’s plan to transform his $44 billion acquisition into something that truly reflects his vision. He envisions X as a super app similar to China’s WeChat, where users can not only post updates and message friends but also enjoy entertainment and purchase goods and services online. However, this rebranding comes after a series of erratic behavior by Musk, which has alienated users and advertisers, leaving Twitter in a financially precarious position and susceptible to competition.
Analysts warn that killing off an iconic internet brand is a highly risky move, especially when rival apps like the new Instagram Threads and smaller upstarts like Bluesky are gaining traction. Mike Proulx, an analyst at Forrester, states that Musk has “essentially erased fifteen years of brand recognition that has become deeply ingrained in our cultural vocabulary.” Twitter declined to provide a comment on this matter.
While Musk’s decision may come as a surprise to some, he had already changed Twitter’s corporate name to X Corp earlier this year, which is a subsidiary of X Holding Corp. Musk had previously stated that he viewed the $44 billion acquisition as a means to accelerate the creation of X, the all-encompassing app. The letter X is already prominently featured in the name of Musk’s rocket company, SpaceX. Furthermore, more than two decades ago, X.com was the name of Musk’s payment company, which eventually merged with a competitor to become PayPal.
It is not uncommon for well-established web companies to undergo name changes. Facebook rebranded as Meta in late 2021, and Google adopted the name Alphabet six years prior. However, in those cases, the core services retained their original branding, ensuring a seamless transition for users. Musk, on the other hand, appears to be aiming to completely eliminate Twitter. Over the weekend, he unveiled the new X logo and announced on Twitter that “soon we shall bid adieu to the Twitter brand and, gradually, all the birds.”
Challenges in Transforming Twitter into a Super App
Linda Yaccarino, who Musk appointed as CEO in May, assured employees in an email that the company will continue to provide new experiences in audio, video, messaging, and financial services, ultimately creating a global marketplace for ideas, goods, services, and opportunities. However, achieving this ambitious goal will require time, resources, and personnel, which Twitter no longer possesses, according to Proulx. Musk recently disclosed that Twitter’s advertising revenue had dropped by 50% and emphasized the need to achieve positive cash flow before pursuing other endeavors.
The platform’s reputation for hate speech, racism, and offensive comments has deterred some advertisers from promoting their products on Twitter. Reports from civil rights groups and researchers have shed light on these issues, further undermining advertisers’ confidence. Musk attempted to offset the decline in advertising revenue by introducing a premium subscription service. However, with a monthly cost of $8, the company would need millions of subscribers to compensate for the losses.
Remaining advertisers on the platform now face the challenge of adjusting to a new terminology. Twitter messages, commonly known as tweets, have become a recognizable brand worldwide. Similar to how Kleenex is synonymous with tissues, Twitter has established a strong and instantly recognizable brand that marketers typically strive to achieve. However, Ralph Schackart, an analyst at William Blair, revealed that their recent survey on the digital advertising market did not indicate any significant increase in spending on Twitter by the businesses polled. On the other hand, there are indications that the overall digital advertising market may be improving, according to the William Blair survey.
Insider Intelligence analyst Jasmine Enberg believes that the name change signifies the end of the Twitter that users and advertisers have known for the past 17 years. She describes it as a “gloomy day” for many Twitter users and advertisers, emphasizing that Elon Musk, rather than competing apps like Threads, has always been the most likely “Twitter killer.”
Implications of Musk’s Rebranding Decision
Musk’s decision to kill off the Twitter brand and replace it with X marks a significant shift in the social media landscape. It demonstrates Musk’s determination to create a super app that encompasses various features and services, similar to China’s WeChat. However, this move is not without risks. By discarding an iconic internet brand, Musk is challenging the loyalty of users and advertisers, who may turn to alternative platforms that better meet their needs.
Moreover, transforming Twitter into a super app requires substantial investments of time, money, and human resources, which Twitter currently lacks. The platform’s declining advertising revenue, coupled with concerns over hate speech and offensive content, further hamper its ability to compete with rivals. Musk’s premium subscription service is an attempt to mitigate the losses, but its success depends on attracting a substantial number of subscribers.
The Future of Twitter Under the X Brand
As Twitter transitions into X, the platform faces an uncertain future. Musk’s vision for X as a super app presents both opportunities and challenges. The rebranding signifies a departure from the Twitter of the past, signaling a new era under Musk’s leadership. However, the success of this endeavor hinges on Twitter’s ability to overcome its financial struggles, address the concerns regarding hate speech, and convince users and advertisers to embrace the new X brand.
Only time will tell whether Musk’s ambitious plan to transform Twitter into a comprehensive app will come to fruition. In the meantime, users and advertisers will closely monitor the
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