Twitter, Inc. Becomes 'X Corp': A Step Towards Becoming An 'Everything App'

Twitter, Inc. was born out of no where, but with big dreams nonetheless.

What began as a 140-character microblogging platform by Jack Dorsey and others, the platform has become the place where government leaders, high-profile business people and celebrities, as well as average people in general, gather in one huge "town hall."

While it was considered a toxic place of the internet, it has survived the harsh and cruel world of abuse, to then be acquired by billionaire Elon Musk, who couldn't retract his intentions to buy the company.

And this time, after extreme cost-cutting measures and many other tweaks and changes, the American social media company people used to know is no more.

Twitter, which is based in San Francisco, California, has been diluted.

It's called 'X Corp.', with a parent company called 'X Holdings Corporations'.

The news about Twitter came to light when Laura Loomer filed a corporate disclosure statement with the United States District Court for the Northern District of California.

She sued Twitter for violating federal racketeering laws when her account was banned in 2019.

The public wasn't particularly interested in following that case.

But what caught their attention, is the court filings that were shared publicly, which reads: "Twitter, Inc. has been merged into X Corp.."

This was revealed on April 4, 2023, when lawyers defending Twitter, Inc. in a lawsuit from Laura Loomer showed at court that Twitter, Inc. "no longer exists."

"X Corp. is a privately held corporation, incorporated in Nevada, and with its principal place of business in San Francisco, California.”

" [...] Its parent corporation is X Holdings Corp. No publicly traded corporation owns 10% or more of the stock of X Corp. or X Holdings Corp. Pursuant to Civil L.R. 3-15, the undersigned certifies that the following listed persons, associations of persons, firms, partnerships, corporations (including, but not limited to, parent corporations), or other entities (i) have a financial interest in the subject matter in controversy or in a party to the proceeding, or (ii) have a non-financial interest in that subject matter or in a party that could be substantially affected by the outcome of this proceeding: X Corp. [and] X Holdings Corp."

In April 2022, Musk registered X Holdings I, II, and III in Delaware. These three separate companies are founded to facilitate his purchase of Twitter.

X Holdings I, controlled by Musk, would serve as the merged entity’s parent company, intended “solely for the purpose of engaging in, and arranging financing for, the transactions." Twitter would merge with X Holdings II, but keep its name and general corporate structure while continuing to operate under Delaware law.

X Holdings III on the other hand, would take on the $13 billion loan that a group of big banks provided Musk to help cover the $44 billion purchase of the company.

Public documents revealed that the merger between Twitter and Elon Musk’s X Corp. was filed in Nevada on March 15, 2023.

What this means, Twitter should become a Nevada-based company rather than a company based in Delaware.

The change of name and the dilution wasn't announced publicly, meaning that it doesn't affect the app or service directly.

Twitter would remain functional as a social media platform.

What really happened here is that, Elon Musk-owned X Corp. is Musk's long-term strategy.

The eccentric entrepreneur isn't at all keen about fiddling with Twitter's issues and such for longer than he should. As a businessman, he should be planning for something bigger.

And one of which, is to transform Twitter into what it can potentially become.

In this case, Musk wants Twitter to become an "everything app," similar to China's WeChat.

Musk has said this in one occasion in the past.

He outlined to the Morgan Stanley Tech Conference about this, when he was clearly astonished by the way WeChat could become the key utility for many people in China, with users doing everything in the app - from paying bills, to buying public transport tickets, registering their details, grocery shopping, etc..

Musk does have a background in digital payments.

Long before the world recognizes him as a Twitter-loving billionaire, he founded an online banking company called X.com in 1999, which was eventually acquired by PayPal, and then merged under the broader PayPal umbrella.

Musk however, was ousted as CEO by PayPal board.

With X Corp. and his X Holdings Corporations, Musk seemingly continues where he left off.

Musk has indeed noted that he believes that PayPal, the company that he played a key role in establishing in the early 2000’s, is "like a halfway version" of what he thinks could be done in online payments and finance.

Further reading: Twitter Grew 'Too Quickly.' But It 'Will Never Die'