Twitter Inc. no longer exists after merger with Elon Musk-owned X Corp
In a significant development, Twitter has announced its merger with X Corp, a newly formed shell company owned by Elon Musk.
The impact of this change on Twitter is still being determined, given the extensive restructuring that has taken place since Musk acquired the company for $44 billion last year.
Musk has previously hinted that the purchase of Twitter could help accelerate the development of his ‘everything app’ called ‘X.’
The billionaire tweeted about the merger on Tuesday using the character ‘X.’
Twitter disclosed the development in a court filing in the US that it no longer exists.
“Twitter Inc. has been merged into X Corp. and no longer exists. The filing mentioned that X Corp. is a privately held corporation incorporated in Nevada, with its principal place of business in San Francisco, California,” the filing mentioned.
Musk, the world’s second wealthiest person, aspires to develop X like Tencent Holdings’ WeChat. It is a super-app that provides various services, such as payment processing, event ticket reservations, and messaging.
However, he has not provided much detail on how this all-encompassing app will fit into his extensive business empire, which includes Tesla and Space Exploration Technologies Corp.
“It’s either convert Twitter to that or start something new. It does need to happen somehow,” Musk said during a podcast last year.
“If you’re in China, you live on WeChat. It does everything. It’s like Twitter plus PayPal plus a whole bunch of things all rolled into one, with a great interface. It’s an excellent app, and we don’t have anything like that outside of China,” he added.
A backstory about the Twitter merger with X Corp
In April 2022, Musk established three independent firms named X Holdings I, X Holdings II, and X Holdings III in Delaware.
X Holdings I intended to serve as the parent company of X Holdings II and facilitate the Twitter merger. Musk created X Holdings III to take on a $13 billion loan to enable the $44 billion acquisition of Twitter.
The merger contract between X Holdings II and Twitter indicated that the former would cease to exist after the merger. Following the merger, X Holdings I would remain the parent company, and X Holdings III would handle financial matters.
