It was revealed that Twitter no longer exists as an independent company after merging with a shell company called X Corp, which was formed by Elon Musk, the billionaire owner of Tesla and SpaceX. This news comes after a document was submitted in a California court for a lawsuit filed against Twitter and its former CEO, Jack Dorsey, by conservative activist Laura Loomer last year.
It is still unclear what this merger means for Twitter, as Musk has suggested in the past that buying Twitter would be an “accelerant” for creating his “everything app,” which he has dubbed X. He has expressed a desire to make X similar to China’s super-app WeChat, which is used for messaging, payments, and booking event tickets, among other things.
While Musk has been vague about how X will fit into his business empire, he recently established X Corp. in Nevada, which was merged with Twitter on March 15. Musk is the president of the firm and its parent company, X Holdings, which was also created last month with an authorized capital of $2 million. It is worth noting that incorporating in Nevada is commonly done by companies who want to have fewer fiduciary obligations, making it harder for investors to sue officers and directors for breach of fiduciary obligations.
Although Twitter did not respond to Bloomberg News’ questions regarding the merger, Musk reaffirmed his vision of an everything app during a Twitter Spaces interview with the BBC at the company’s San Francisco headquarters. He said that Twitter was an accelerant towards this vision and that observers will just have to “stay tuned to find out” his plans for X.
