Twitter is now X

The internet is buzzing with news of Twitter's recent rebranding announcement. The popular social media platform, formerly known as X.com, has now redirected its website to Twitter.com. To accompany the name change, the company's headquarters now features a flashy "X" logo instead of the iconic bird symbol, and the app is now listed as "X" in both the Apple and Google app stores.

This rebranding effort is part of Twitter's ongoing transformation under the leadership of newly appointed CEO Linda Yaccarino. The platform, once known as a hub for highly connected individuals, is now striving to become an all-encompassing app capable of doing "everything."

The acquisition of Twitter by X Corp, helmed by billionaire Elon Musk, was driven by the desire to preserve freedom of speech and to accelerate the development of X, the ambitious "everything app." Musk explained, "The name Twitter made sense when it was limited to short messages resembling bird tweets. But now, users can post almost anything, including lengthy videos. In the future, we plan to incorporate comprehensive communication features and the ability to manage one's entire financial world."

This rebranding signifies Musk's determination to reinvent Twitter, which he acquired in 2022 for a staggering $44 billion.

So, what exactly does this mean for X?

Musk's vision is to transform Twitter into a super-app similar to China's WeChat, capable of fulfilling any online need a user may have.

Nii Ahene, the Chief Strategy Officer of marketing firm Tinuiti, explains that the app will offer users a wide range of functionalities, such as listening to podcasts, shopping, and watching videos. Twitter already allows users to engage in live audio conversations, send longer text messages, and even broadcast videos. If the platform's venture into paid subscriptions proves successful, it may even share subscription revenue with its users, potentially becoming a more mainstream version of platforms like Patreon.

However, turning Twitter into an all-encompassing app will not be without its challenges. While the name change is significant, no new features have been introduced yet. Musk's strategy seems to prioritize creating hype before delivering new functionalities. Bloomberg Intelligence analyst Mandeep Singh suggests that the name change indicates Musk's intention to retain control of the company for the foreseeable future, ruling out the possibility of a quick sale.

What are the roadblocks?

Despite the ambitious goals, there are potential roadblocks ahead. An "everything app" concept can be confusing for users and may struggle to attract sufficient advertisers. Aaron Goldman, Chief Marketing Officer for Mediaocean, an advertising partner of Twitter's, points out the stark contrast between Musk's belief in minimal advertising for Tesla and the considerable advertising budgets of numerous brands on Twitter.

Expanding the platform to include shopping and paid subscriptions could help Twitter diversify its revenue streams and reduce dependency on advertising. However, this expansion would require significant investments in staff and infrastructure, which may be challenging for a company that has recently downsized its workforce and is currently facing multiple lawsuits over unpaid bills.

Building the necessary infrastructure for an "everything app" would require substantial upfront investments, estimated to be in the range of $40 to $50 billion. Singh highlights that Twitter's existing infrastructure is insufficient to support such aspirations.

While Twitter's rebranding holds promise for its transformation into a comprehensive app, the path ahead is filled with obstacles. Only time will tell if Twitter can successfully navigate these challenges and emerge as the desired "everything app" envisioned by Elon Musk.