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Musk risks even more damage to Twitter’s business as the messaging app changes name to X – UnlistedNews

Elon Musk has long been in love with the letter X.

Now, it’s killing off the Twitter brand and the iconic blue bird in favor of X as part of an effort to turn its $44 billion acquisition into something that’s genuinely its own.

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Musk’s vision for X is something akin to China’s WeChat, a super app that people can use to entertain themselves and buy goods and services online, as well as post updates and message friends. But the rebranding comes after months of erratic behavior by the world’s richest person that scared off users and alienated advertisers, leaving Twitter in a troubled financial position and increasingly vulnerable to competition.

Killing an iconic Internet brand is “extremely risky” at a time when rival apps like the new Instagram Threads and smaller startups like Bluesky are luring users, said Mike Proulx, an analyst at Forrester.

Musk “single-handedly removed for more than fifteen years a brand that secured its place in our cultural lexicon,” Proulx said in an email.

A company spokesperson did not provide a comment for this story.

Not entirely a surprising move. Musk had already converted Twitter’s corporate name to X Corp, which itself is a subsidiary of X Holding Corp, as revealed in April. court file. Musk said last October, just before he bought Twitter, that he saw the $44 billion deal as “an accelerator to create X, the app of everything.”

The letter X features prominently in the name of Musk’s rocket company, SpaceX. And more than two decades ago, X.com was the name of Musk’s payments company that eventually became PayPal through a merger with a rival at the time.

Name changes have become quite common among incumbent web companies. Facebook became Goal in late 2021, and Google adopted the Alphabet nickname six years earlier. In those cases, however, the newly named parent companies kept their core services branded, so Facebook users and Google search could continue to do their thing without interruption.

Musk seems to be betting that he can ditch Twitter entirely. Over the weekend, he unveiled the new X logo, saying in a tweet that “soon we will say goodbye to the Twitter brand and gradually to all the birds.”

Linda Yaccarino, whom Musk hired as chief executive in May, said in an email to employees Monday that the company “will continue to delight our entire community with new experiences across audio, video, messaging, payments, banking, creating a global marketplace for ideas, goods, services and opportunities.”

Succeeding in that mission is easier said than done.

Musk’s desire to turn X into a super app requires “time, money and people,” which Twitter “no longer has,” Proulx said. Earlier this month, Musk said Twitter has suffered a 50% drop in ad revenue and needs to “get cash flow positive before we can afford anything else.”

Some advertisers were increasingly concerned about promoting their products on Twitter due to reports showing an increase in hate speech and racist and offensive comments on the platform, as documented by various civil rights groups and researchers.

Musk has tried to make up for some of the decline in advertising with a premium subscription service. But at $8 a month, the company would need tens of millions of subscribers to break even.

Advertisers who remain on the platform now have to adopt a new jargon. People and businesses around the world know Twitter messages as tweets. Like Kleenex, Twitter was able to develop a recognizable brand that became instantly familiar to consumers, a feat any corporate marketing team would celebrate.

Ralph Schackart, an analyst at William Blair, told CNBC last week that his team of analysts “didn’t pick up anything” from the advertisers they surveyed as part of a recent survey. survey in the digital advertising market to indicate that these companies had increased their spending on Twitter. Meanwhile, there are signs that the overall digital ad market may be on the mend, according to the William Blair survey.

Insider Intelligence analyst Jasmine Enberg said in an emailed statement that the name change marks “a bleak day for many Twitter users and advertisers” and a “clear sign that the Twitter of the last 17 years is gone and will not return.”

“Twitter’s rebranding is a reminder that Elon Musk, not Threads or any other app, is and always has been the most likely ‘Twitter killer,'” Enberg wrote.

LOOK: Elon Musk wouldn’t be who he is without ‘demon mode’ and his drive.

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Sara Marcus
Sara Marcushttps://unlistednews.com
Meet Sara Marcus, our newest addition to the Unlisted News team! Sara is a talented author and cultural critic, whose work has appeared in a variety of publications. Sara's writing style is characterized by its incisiveness and thought-provoking nature, and her insightful commentary on music, politics, and social justice is sure to captivate our readers. We are thrilled to have her join our team and look forward to sharing her work with our readers.
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