From Twitter to X: Elon Musk's Rebranding Gamble

As of July 25, “x.com” redirects to twitter.com. The Twitter logo is nowhere to been seen on the website, but the recognisable light blue theme remains. Just the main logo at the top of screen along with Twitter’s official account being changed to show the new X name and logo (but the handle remains “@Twitter”).

How Will X Be Different to Twitter?

The new platform, X, will offer a range of features, including live audio conversations, longer text messages, video broadcasting, podcast listening, shopping, and potentially paid subscriptions for exclusive content. The vision is to create a one-stop platform that allows users to do a variety of tasks and activities online. It aspires to become a global marketplace where users can exchange ideas, goods, services, and opportunities. The current rebranding is primarily a name change, and no major new features have been introduced yet.

The Letter X

Elon Musk has a fixation on the letter "X," and it is evident in various aspects of his ventures, including the original name of his first startup, X.com (which became PayPal), SpaceX (his space exploration company), xAI (artificial intelligence app), Model X (one of Tesla's car models), and even his son's name, X Æ A-XII.

Musk had long said he might make a name change, but he hastened the process in a tweet late Sunday when he declared that “soon we shall bid adieu to the twitter brand and, gradually, all the birds”. So, what does that mean for “tweets”? Will this new X platform keep the original 280 character per post concept? Will people still be able to “tweet” and remain the verb it has become?

Twitter’s Downfall in the Past Year

Since Musk’s takeover in October 2022 and the new appointment of CEO, Linda Yaccarino, in May 2023, significant changes have been made in the past year. Most notable of those changes with the reduction in workforce. Around 50% of Twitter’s workforce was laid-off when Musk took over in October because they refused to sign Musk’s ultimatum to adapt a “hardcore” work culture.

During this period, Twitter also faced a decline in ad revenue, which dropped by 50%. This decreased was a cause for concern as the platform tried to navigate a competitive landscape and adapt to changing user preferences. Alternatives to Twitter began to emerge, specifically Meta’s “Threads”, posing a threat to Twitter’s market share.

Roadblocks and Challenges

While the vision for X is ambitious, there are potential roadblocks. The app could face challenges in attracting enough advertisers and may struggle with user confusion if it attempts to do too many things at once. The rebranding brought hope for a new beginning, but it also risked alienating loyal users and erasing brand equity. However, the vision has faced scepticism from marketing experts, viewing it as an unnecessary gamble on an uncertain future. Musk made significant changes, including a recent reduction in the workforce and removal of content moderation rules. The success of "X" will depend on addressing challenges and adapting to the evolving social media landscape.

Moreover, to realize the full vision of an “everything app”, significant investments in staff and infrastructure are required, which could be a challenge considering past staff reductions and ongoing legal issues. According to the New York Times, in Twitter’s headquarters in San Francisco on Monday, X logos were projected in the cafeteria and workers began removing bird-related paraphernalia from around the building. So, work has already begun.

Overall, the transformation of Twitter into X aims to redefine the app as a multifaceted platform offering various services, but its success will depend on how well it can execute the vision and overcome the challenges it faces. With the new leadership from the past year, workforce lay-offs, new competition and loss of ad revenue Twitter had to do something, but was an extravagant overhaul, leaving Twitter unrecognisable, really the best decision? As new changes have already begun to rollout, only time will tell.