Twitter is present process vital adjustments underneath new proprietor Elon Musk. The platform was rebranded “X” to mirror bold plans to increase far past a social media platform into an all-encompassing “all the pieces app,” probably incorporating options resembling digital banking and e-commerce.

On this article, we’ll discover essentially the most shocking but little-known info about X for the reason that takeover, in addition to Musk’s grand imaginative and prescient for its future.

Buckle up and let’s dive in!

The Thought Behind X

Earlier than we begin with info after its rebranding we’re going to look first what’s the cause behind X. The identify change to X alerts that Twitter goals to grow to be greater than merely a social media platform. There are plans to include options like digital banking, e-commerce, and extra social performance. 

This try at an all-in-one web providers platform is harking back to Elon Musk’s unique X.com enterprise launched in 1999. In line with writer Walter Isaacson, X.com sought to convey innovation to on-line finance earlier than ultimately merging with one other firm to kind PayPal. 

Elon’s first try at a monetary providers firm, X.com, didn’t efficiently disrupt the trade again in 1999. Now, he’s utilizing Twitter as his subsequent alternative to make waves in a distinct sphere. Together with his $44 billion acquisition of Twitter in 2022, Musk goals to remodel the social media platform into an “all the pieces app” that includes options like banking, e-commerce and extra.

Nevertheless, it’s debatable whether or not including options like banking and procuring to what has beforehand been a microblogging app is sensible. Solely time will inform if that was a good suggestion.

Musk Lower The Twitter Workforce by 80%

Elon Musk revealed in an interview with the BBC that vital layoffs have occurred at Twitter since he assumed management, affecting over 6,000 workers. Musk acknowledged that Twitter now employs round 1,500 folks, down from almost 8,000 on the time of acquisition. This equates to an 80% lower within the firm’s workforce. 

Workers from numerous departments, together with moral AI, advertising, communication, search, public coverage, wellness, and curation groups, who’re accountable for selling dependable info, together with election-related content material, have been amongst these laid off. In line with the CEO, downsizing a workforce is “not enjoyable in any respect” and generally is a “painful” course of.

Twitter Worth Sunk 50%+ Since Musk’s Takeover

Twitter’s valuation has plummeted since Elon Musk’s acquisition in October 2022. Constancy, an asset supervisor that stored a stake in Twitter value about $20 million after the acquisition, stated in a submitting that its present stake is value just below $6.6 million. This suggests a complete firm valuation of $14.75 billion for what’s now generally known as X Holdings Corp.

Constancy disclosed its Twitter holdings as a part of mandated reporting for its blue-chip progress fund, which invests in giant world companies with sometimes steady valuations. The fund additionally has investments in different Musk firms, together with $386 million in personal rocket firm SpaceX and $849 million in public electrical automobile maker Tesla.

Twitter’s value is necessary for workers who joined when the inventory was publicly traded and have been compensated with firm inventory choices. In line with reviews, Musk provided to worth these choices at round $20 billion in March, implying that the corporate’s worth had not less than halved since his takeover.

The Twitter Blue Replace

Maybe essentially the most notable change after it bought rebranded is Twitter Blue, the corporate’s subscription service, which debuted in late November of 2022 after a number of failed launches. Twitter Blue, which prices $8–11$ per thirty days, guarantees further options resembling tweet modifying, elevated visibility, and fewer commercials. 

Some unverified reviews point out that Twitter Blue has a large subscriber base, however Twitter has but to launch any official knowledge on the paid tier’s success. The platform’s new system has reworked Twitter’s iconic blue verification checkmark, which was initially used to substantiate the authenticity of celebrities, journalists, manufacturers, and different public figures. 

Although accounts beforehand awarded blue checkmarks maintain them as a “legacy” badge with the caveat that they could or might not point out notability, the image has now taken on a brand new that means as an indicator of Twitter Blue subscription. Because of this, the blue checkmark now not solely conveys authoritative standing. This shift has altered the that means in addition to the visible design of Twitter’s once-standard verification system.

Twitter’s New Twin Feeds

Twitter has additionally made adjustments to how tweets seem on customers’ timelines. There’s now a tab that permits you to swap between the latest tweets out of your adopted accounts and people prompt by Twitter. This seems as two columns labeled “for you” and “following” on the prime of the iPhone. To modify views, Android customers can faucet an icon.

One drawback arises as a result of some customers might have missed the truth that the app can mechanically revert to Twitter’s customized “for you” feed. Complaints point out that this feed comprises extra of Twitter’s advisable content material and interactions between adopted and unfollowed accounts than simply tweets from chosen followers.

Twitter New Character Restrict

Twitter has additionally been growing the utmost tweet size for paid Twitter Blue subscribers. The restrict for Blue customers was lately elevated from 10,000 to 25,000 characters. Twitter elevated the character restrict for Blue subscribers earlier this yr, first to 4,000 characters in February after which to 10,000 characters in April. The corporate additionally launched textual content formatting options resembling daring and italics on the time. 

Twitter made a couple of vital adjustments to tweet size limits underneath earlier management. The final change was in 2017 when the character restrict was elevated from 140 to 280, customers reacted negatively to the replace on the time. The current will increase to permit tweets over 25,000 characters characterize a serious shift in Twitter’s traditionally constrained format. It introduces extra flexibility for paid customers to submit long-form content material.

Twitter Suspended API Entry

Twitter additionally seems to have disabled entry to its API, which permits communication with third-party platforms. Because of this, customers of non-Twitter apps and social media administration instruments might discover themselves unable to work together with Twitter in the intervening time.

In line with the Twitter Dev account, Twitter intentionally suspended API entry in what consultants are decoding as an intentional transfer to dam third-party Twitter platforms. In style apps like Tweetbot, Fenix, Twitterific and others that relied on API entry have been straight impacted.

The change may very well be associated to ad-based monetization plans and the brand new Twitter Blue subscription, which may battle with exterior app capabilities. Twitter, alternatively, has but to concern an official assertion explaining the API disruption.

Musk Reinstates Banned Twitter Accounts

Elon has additionally begun reinstating a number of beforehand banned, high-profile Twitter accounts, sparking outrage. Customers who’ve been unbanned embody rapper Ye (previously Kanye West) for antisemitic posts and former U.S. President Donald Trump, whose tweets are accused of inciting the 2021 Capitol riots. Lately, Alex Jones was introduced again after some loopy controversies he’s been concerned in. Musk reinstated him after a ballot.

The choice to convey again these accounts sparked a variety of public reactions. Some reward it as a brave transfer in help of free speech, whereas others disapprove of it as a hasty determination that might hurt the model.

Elon’s Future Plan For X

In line with the New York Instances, Musk has set some bold monetary targets for Twitter by 2028, together with growing annual income from $5 billion in 2021 to $26.4 billion in 2028. He additionally desires to extend Twitter’s consumer base to 931 million by 2028, from 217 million.

Musk’s technique consists of decreasing Twitter’s reliance on promoting, which is able to account for 90% of income in 2021. He intends to diversify income streams by implementing subscriptions and funds. Promoting would nonetheless generate $12 billion in income in 2028, in accordance with his projections, whereas subscriptions may add one other $10 billion.

This shift has the potential to basically alter Twitter’s enterprise mannequin of offering free entry. Musk suggests that companies and governments may even see the platform’s worth and be prepared to pay charges. This may distinguish Twitter from opponents resembling Fb and TikTok, which rely closely on promoting.

Twitter’s workforce may even be restructured to align with the brand new strategic imaginative and prescient. Whereas there could also be some preliminary workforce reductions, Musk hopes to extend the variety of workers to 11,072 by 2025.

The Timeline Of How It Occurred

Musk started the method of buying Twitter on April 14, 2022, and accomplished the acquisition on October 27, 2022. In July 2023, he introduced that Twitter can be rebranded as ‘X.’ Right here’s a abstract of what occurred:

• December 2017 – A playful trade on Twitter planted the seed in Musk’s thoughts about probably shopping for the platform.
•  January 2022 – Musk quietly started amassing Twitter shares, constructing a considerable stake.   
•  April 4, 2022 – In an SEC submitting, Musk revealed he had grow to be Twitter’s largest shareholder with a 9.2% stake.  
•  April 14, 2022 – Musk provided an unsolicited bid to take Twitter personal for $44 billion at $54.20 per share.   
•  April 15, 2022 – Twitter adopted a “poison capsule” provision to defend towards Musk’s hostile takeover try.  
• October 2022 – After months of public feuding, Musk proposed continuing together with his unique $44 billion supply.  
• October 27, 2022 – The takeover deal formally closed. Musk took over as the brand new proprietor and CEO of Twitter.  
• July 2023 – Musk introduced a plan to rebrand Twitter as “X” and substitute its iconic emblem.

Key Takeaways:

• It took over 6 months from the preliminary supply to the finalized acquisition deal.  
• Musk paid $44 billion for 100% of Twitter shares.
• Important workforce cuts of ~75% since he took over.
• Imaginative and prescient to increase Twitter into an “all the pieces app”.

Elon Musk went from casually suggesting a Twitter acquisition to formally taking on as CEO and proprietor in lower than a yr. One can anticipate Musk’s management to defy conventions, Musk is already shaking issues up by rebranding Twitter because the enigmatic “X.”