Twitter ceases to exist as a company: Elon Musk’s hidden plan behind the merger with X Corp

Twitter seems to have numbered days as we have known it so far. Its current CEO, Elon Musk, decided merge the platform with X Corp., a shell company which, according to a legal document filed these days before a California court.

The leak of this document came to light after a judicial presentation, dated April 4, 2023, where many began to weave conjectures. “Twitter, Inc. has merged with X Corp. and is no more,” summarizes the trade.

The filing of the document is linked to a lawsuit filed against the studio by activist Laura Loomer last year, after she was banned from the social network for inciting hatred against Muslims.

The cover change has triggered speculation about the plans of Elon Musk, who has already hinted on several occasions his intention to transform the social network into a great app that works for everything. Very similar to Chinese WeChat.

That is, an extended application that offers services of free messaging and callingsocial networks and an online payment system to monetize all these services and those to come in the future.

Not even the head of the company has denied the information, quite the contrary. Shortly after news broke of Twitter’s demise as a company to merge with X Corp., the entrepreneur posted a tweet: “X,” spread the rumors that spread through social networks.

Since Elon Musk bought Twitter last year, it’s no longer a public company. Therefore, you do not need to report name change updates to the US Securities and Exchange Commission.

According to Bloomberg, Musk created a trio of holding companies in Delaware under a variation of the name X Holdings as part of his Twitter takeover offer.

“Musk could create a parent structure, similar to Alphabet, where he has all of his companies,” said Mandeep Singh, an analyst at Bloomberg Intelligence.

But X Corp. was incorporated on March 9 in Nevada, according to filings in that state. The merger with Twitter was presented last March. And this new matrix would have an authorized capital of two million dollars, according to this medium.

Twitter, “a painful purchase” for Musk

Twitter owner Elon Musk admitted to the BBC that buying the company was “quite painful”, with its ups and downs, but that I would sell it if the right person was interested.

“The scale of grief (for the purchase) has been extremely high, this hasn’t been some kind of party” and “it hasn’t been boring,” Musk added in an interview with the BBC today.

The businessman acknowledged the past few months had been “quite stressful” for the company, but insisted he believed the purchase was the right thing to do at the time.

The American billionaire has described Twitter’s management as a “roller coaster” and admitted that there have been “many mistakes” six months after acquiring the social network.

“Were many mistakes made along the way? Sure,” he said. “But all is well if it ends well. I feel like we’re headed to a good place.”