Elon Musk-owned X Corp has absorbed the social media platform, Twitter, as part of the CEO’s long-awaited move to turn it into an “everything app” similar to China’s WeChat app.
This means that Twitter is now under Musk’s X Holdings Corp, which has been hinted to be the future parent company for all of Musk’s companies including Tesla, Space X, Neuralink, and The Boring Company.
The merger between the two entities is yet to be officially announced and is not expected to have any immediate effect on Twitter’s operations.
It was only made public after lawyers for the microblogging company disclosed it in an ongoing lawsuit in the US.
“Twitter, Inc. has been merged into X Corp. and no longer exists. X Corp. is a privately held corporation. Its parent corporation is X Holdings Corp. No publicly traded corporation owns 10 percent or more of the stock of X Corp. or X Holdings Corp”, the court filing, dated April 4, 2023, stated.
So far, the evidence does not prove that X Corp. is the new platform that will lead to the creation of the X app and could just be a move by Musk to create a larger parent company named X to act as the controlling interest over his other companies such as Tesla and SpaceX.
In April 2022, media reports said Musk registered X Holdings I, II, and III in Delaware, three separate companies designed to facilitate his purchase of Twitter.
According to the Securities and Exchange Commission, Twitter would merge with X Holdings II, but keep its name and general corporate structure while continuing to operate under Delaware law.
All the debt and lawsuits that Musk and Twitter face will be carried over to the new X Corp.
X Holdings I, which is directly held by Musk, would then serve as the merged entity’s parent company, while X Holdings III would take on the $13 billion loan that a group of major lenders provided him to help cover the $44 billion acquisition of the platform.
It has been noted that the new company which absorbed Twitter under the X Corp brand is based in Nevada instead of Delaware.
According to the Nevada secretary of state’s website, Elon Musk registered two new businesses in the state on March 9: X Holdings Corp. and X Corp.