Twitter Inc. has ceased to be an independent company following a merger with a newly formed shell firm called X Corp, sparking speculation about Elon Musk Intended for social media platforms.
Twitter “no longer exists” following its merger with X Corp, according to an April 4 document submitted to a California court for a lawsuit filed last year by conservative activist Laura Loomer against the company and its former chief executive, Jack Dorsey. Is”.
It’s unclear what the change means for Twitter, which has seen a massive overhaul since Musk bought the company for $44 billion (roughly Rs. 36,117,399 crores) last year. The billionaire owner has suggested in the past that buying Twitter would be an “accelerator” to build X — which he dubbed the “Everything App.” Musk tweeted about the move on Tuesday with the single character “X”.
The second richest man in the world wants to make X like China WeChatis a super-app owned by Tencent Holdings Limited is used for everything from messaging to payments and booking event tickets. But he has been vague about how it would fit with his vast business empire, which includes electric car giant Tesla Inc to Space Exploration Technologies Corp. Started and eventually merged with PayPal.
Musk first set up a trio of holding companies in Delaware with a variation of the name “X Holdings” last April as part of his takeover bid for Twitter. But X Corp was founded in Nevada on March 9, according to state filed records. Its merger with Twitter was presented on 15 March. Musk is chairman of the firm and its parent, X Holdings Corp, which was also formed last month and has an authorized capital of $2 million (roughly Rs. 16,415,000 crores), the filing shows. The recent changes were first reported by Slate.
“It’s understood in the corporate world that incorporating in Nevada is what you want to do to have fewer fiduciary obligations,” said Ann Lipton, associate dean of Tulane University’s law school. “If you are an investor, it is difficult to sue officers and directors of Nevada companies for breach of fiduciary obligations.” Twitter was previously incorporated in Delaware, and Musk’s battle to acquire the company took place in its chancery court.
Twitter, which no longer has a team handling media queries, did not immediately comment on questions sent by Bloomberg News. Wilkie Farr & Gallagher, the attorneys at the law firm representing Twitter in the case, also did not immediately respond to a request for comment.
The move sparked intense speculation on Twitter about its meaning, with Musk’s tweet being viewed more than 13 million times within hours. In Japan, the topic “Twitter Gone” started trending, with users joking that Twitter’s new name would resemble a local rock band, X Japan.
“Musk could similarly create a basic structure Alphabet, where all their companies are,” said Mandeep Singh, analyst at Bloomberg Intelligence. “I don’t see how he can take e-commerce or payments right into Twitter when larger peers like Alphabet and Meta have struggled to become the everything app on the consumer side.”
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