Elon Musk, the owner of Twitter, and the newly appointed CEO have announced their plans for a significant overhaul of the social media platform. They intend to rebrand it as “X” and shift its focus towards payments, banking, and commerce.
Twitter transforming into ‘X’
The CEO, Linda Yaccarino, tweeted about “X” becoming a future state of unlimited interactivity, featuring audio, video, messaging, payments, and banking functionalities, creating a global marketplace for ideas, goods, services, and opportunities. The platform will be powered by AI to connect users in innovative ways. Elon Musk, the CEO of SpaceX, shared his vision for Twitter with an image of the Twitter bird against a black and white marbled backdrop, expressing his excitement for the transformation.
Since Elon Musk’s acquisition of Twitter for $44 billion in the previous year, the platform’s advertising business has suffered a decline due to negative reactions from marketers, which impacted content moderation and management style. To counter the decreasing advertising revenue, Musk has been steering Twitter towards integrating payment and commerce features.
The rebranding marks a significant departure from Twitter’s avian-themed branding, which has been part of the platform’s identity since its establishment in 2006. Musk’s acquisition of the social media served as a catalyst for the creation of “X,” which aims to be an all-encompassing application, combines social media, messaging, and mobile payments.
Elon Musk has been actively involved in suggesting changes for the “X” rebranding, including an “Art Deco” style for the new logo. He introduced the idea of calling a post “an X” under the platform’s fresh identity.
Twitter’s parent company has already been named “X Corporation” by Musk, and he has expressed the intention to go live with the new brand once a suitable logo is chosen.
Since Musk’s takeover, the social media giant has faced technical issues and staff layoffs, leading to dissatisfaction from users and advertisers. The decline in advertising revenue has been around 50% since he assumed control in October.
While Twitter has approximately 200 million daily active users, the introduction of Meta’s text-based platform called Threads has provided competition, but its user engagement has decreased in the weeks following its launch, according to market analysis firm Sensor Tower.