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X Corp.

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This article is about the company. For the fictional Marvel Comics institution, see X-Corporation.
Not to be confused with X Corps (disambiguation), X (company), or X.com.
X Corp.
Company typeSubsidiary
Industry
PredecessorTwitter, Inc.
FoundedMarch 9, 2023; 21 months ago (2023-03-09)[a]
FounderElon Musk
Headquarters
San Francisco, California
,
U.S.
Area served
Worldwide
Key people
ServicesTwitter
OwnerElon Musk
Number of employees
1,300 full-time equivalent (2023) Edit this on Wikidata
ParentX Holdings Corp.
This article is part of
a series about
Elon Musk
Personal
Companies
Politics
In popular culture
Related
Elon Musk's signature

X Corp. is an American technology company established by business magnate Elon Musk in 2023 as the successor to Twitter, Inc. It is a wholly owned subsidiary of X Holdings Corp., which is itself owned by Musk. The company owns the Twitter social networking service and has announced plans to use it as a base for other offerings.[2]

History

Conceptualization and planning (2022–2023)

Further information: Acquisition of Twitter by Elon Musk

In April 2022, filings to the Securities and Exchange Commission (SEC) revealed Musk had formed three corporate entities in Delaware, all under the name of X Holdings. According to the filings, one of the entities was to merge with Twitter, Inc., while another was to serve as the parent company of the newly merged company. A third entity would then help take on a US$13 billion loan provided by various large banks to acquire Twitter.[3] The name "X" dates back to X.com, an online bank co-founded by Musk in 1999. In June 2001, X.com became PayPal.[4] Musk considered forming a holding company named "X" for Tesla, Inc. and SpaceX in August 2012.[5] In July 2017, Musk reacquired the domain X.com, for an undisclosed amount, from PayPal.[6] Musk reaffirmed his support for the name "X" in December 2020, replying to a Twitter user who renewed calls for Musk to form a new holding company under that name, although he dismissed the idea of X acquiring his businesses.[7]

The concept for X solidified in October 2022, when Musk tweeted that acquiring Twitter is "an accelerant to creating X, the everything app". According to Musk, Twitter would accelerate the creation of X by "3 to 5 years". Musk expressed interest in creating an app similar to WeChat—a Chinese instant messaging, social media, and mobile payment app—on a podcast in May 2022.[8] In June, Musk told Twitter employees that Twitter is a "digital town square" that should be all-encompassing, like WeChat.[9] In a Morgan Stanley conference in March 2023, Musk touted X once again as the potentially "biggest financial institution in the world".[10] On October 27, 2022, Musk acquired Twitter for $44 billion, and subsequently became its CEO.[11]

Formation (2023–present)

In March 2023, Musk registered X Corp. in Nevada. On the same day, Musk registered the artificial intelligence (AI) company X.AI.[12] Later that month, Musk applied to merge X Holdings I with X Holdings Corp. and Twitter, Inc. with X Corp.[3] In the filing, Musk revealed that X Holdings Corp. has $2 million in capital; X Holdings Corp. will also serve as the parent company for X Corp.[13] In a company-wide email that month, Musk announced that Twitter employees will receive stock in X Corp.[14]

In an April 2023 court filing for an ongoing lawsuit filed by right wing political activist Laura Loomer against Twitter and its former CEO Jack Dorsey, Twitter, Inc. notified the court that it had been consolidated into X Corp., a Nevada corporation based in Carson City. A similar filing was made in the U.S. District Court for the Southern District of Florida.[15]

Linda Yaccarino in 2014

On May 11, 2023, Musk tweeted that he had found his replacement as Twitter and X Corp.'s CEO. The next day, on May 12, he named Linda Yaccarino as the new CEO, adding that she "will focus primarily on business operations, while I focus on product design & new technology".[16] Musk said he will transition his role to executive chairman and chief technology officer.[17] Yaccarino succeeded Musk on June 5, 2023.[18]

Fidelity Investments estimated the company's value at $15 billion in June 2023.[19]

Notes

  1. ^ In an April 4, 2023 court filing, Twitter, Inc. disclosed that it no longer existed and was consolidated into X Corp. The corporation was created under Nevada corporate law on March 9, 2023.[1]

References

Citations

  1. ^ Smith, Connor (April 11, 2023). "Twitter Inc. 'No Longer Exists.' Why Elon Musk Chose Nevada For X Holdings". Barron's. Archived from the original on April 12, 2023. Retrieved April 11, 2023.
  2. ^ Brown, Ryan (April 13, 2023). "Twitter partners with eToro to let users trade stocks, crypto as Musk pushes app into finance". CNBC. Archived from the original on 2023-04-13. Retrieved 2023-04-13.
  3. ^ a b Pahwa, Nitish; Joseph Stern, Mark (April 10, 2023). "Twitter Isn't a Company Anymore". Slate. Archived from the original on April 18, 2023. Retrieved April 11, 2023.
  4. ^ Vance 2017, p. 77-78.
  5. ^ "Musk says may form holding company for Tesla, SpaceX". Reuters. August 31, 2012. Archived from the original on April 12, 2023. Retrieved April 11, 2023.
  6. ^ Huang, Echo (July 11, 2017). "Elon Musk bought a web domain worth millions with "sentimental value" to him". Quartz. Archived from the original on April 12, 2023. Retrieved April 11, 2023.
  7. ^ O'Kane, Sean (April 21, 2022). "Musk Forms 'X Holdings' After Hints at a Parent Company for Tesla, SpaceX". Bloomberg News. Archived from the original on April 16, 2023. Retrieved April 11, 2023.
  8. ^ Huang, Kalley (October 6, 2022). "What Does X Mean to Elon Musk?". The New York Times. Archived from the original on April 10, 2023. Retrieved April 11, 2023.
  9. ^ Isaac, Mike (June 16, 2022). "Elon Musk tells Twitter's employees he wants the service to 'contribute to a better, long-lasting civilization.'". The New York Times. Archived from the original on January 14, 2023. Retrieved April 11, 2023.
  10. ^ Saul, Derek (March 7, 2023). "Musk's New Twitter Dream: Become 'Biggest Financial Institution In The World'". Forbes. Archived from the original on April 12, 2023. Retrieved April 11, 2023.
  11. ^ Conger, Kate; Hirsch, Lauren (October 27, 2022). "Elon Musk Completes $44 Billion Deal to Own Twitter". The New York Times. Archived from the original on October 29, 2022. Retrieved April 11, 2023.
  12. ^ Peters, Jay; Roth, Emma (April 14, 2023). "Elon Musk founds new AI company called X.AI". The Verge. Archived from the original on April 14, 2023. Retrieved April 14, 2023.
  13. ^ Feeley, Jef. "Twitter becomes X Corporation as Musk advances 'everything app' hopes". The Irish Times. Retrieved April 11, 2023.
  14. ^ Conger, Kate; Mac, Ryan (March 26, 2023). "Elon Musk Values Twitter at $20 Billion". The New York Times. Archived from the original on April 11, 2023. Retrieved April 11, 2023.
  15. ^ Gaus, Annie (April 11, 2023). "Twitter Is Now Called X Corp and 'No Longer Exists'". The San Francisco Standard. Archived from the original on April 11, 2023. Retrieved April 11, 2023.
  16. ^ Roth, Emma (May 12, 2023). "Twitter's new CEO is Linda Yaccarino, a longtime ad exec for NBCU". The Verge. Archived from the original on May 12, 2023. Retrieved May 12, 2023.
  17. ^ Spangler, Todd (May 12, 2023). "Elon Musk Confirms Linda Yaccarino as Twitter's New CEO, Focused on Business Operations". Variety.
  18. ^ Frier, Sarah (June 5, 2023). "Twitter's New CEO Linda Yaccarino Has First Day in the Role". Bloomberg News.
  19. ^ Ryan Mac; Tiffany Hsu (June 5, 2023). "Twitter's U.S. Ad Sales Plunge 59% as Woes Continue". The New York TImes.

Bibliography

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