During the trial of Laura Loomer, who filed a lawsuit against Twitter for blocking her account and accused the social network of “violating federal racketeering laws”, it was revealed that the company called “Twitter” no longer exists. Musk secretly merged it with X Corp., which is why it is listed as a defendant in the case.
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There have been no public announcements about the merger (besides Musk’s humble tweet with the letter X), but it appears the billionaire has been mulling it over since acquiring Twitter. In April 2022, he registered X Holdings I, II and III in Delaware – three separate companies that were supposed to facilitate the process of acquiring the social network.
X
— Elon Musk (@elonmusk) April 11, 2023
Under the deal, Twitter will merge with X Holdings II, but will retain its name and general corporate structure while continuing to operate under the laws of the state of Delaware. X Holdings I, controlled by Elon Musk, will be the parent company of the combined entity, while X Holdings III will assume a $13 billion loan that a group of major banks gave Musk to cover its $44 billion purchase of Twitter. (According to Twitter’s claims in the lawsuit against Musk, X Holdings I will be appointed “for the sole purpose of participating in and arranging the financing of the transaction.”)
According to the agreement, X Holdings II will cease to exist as an active entity after the merger with Twitter. So the official structure after Musk’s takeover was X Holdings I controls Twitter and X Holdings III handles the cash. However, documentation posted on the Nevada Secretary of State’s business portal shows that the arrangement is not in effect. On March 9, Elon Musk registered two new companies in the state: X Holdings Corp. and X Corp., and on March 15 filed for a merger with Twitter Inc. from X Corp.
Wait, Twitter soon to be X?
Merger filed with Twitter and X Corp and X being the survivor? pic.twitter.com/oNDkZufsHQ
— SpacTrader110 (@SpacTrader110) April 4, 2023
The restructuring was confirmed in Laura Loomer’s trial — about three weeks after X Corp. was registered in Carson City. Other legal filings don’t seem to have marked the transition (Twitter is embroiled in multiple lawsuits: censorship issues in India, lawsuits from former employees, and failure to pay vendors).
Musk himself is very attached to the letter X (if you don’t even take into account the fact that it is present in his son’s name) – in 1999 he founded X.com, an online bank that soon merged with another company to convert to PayPal. X also appears in the name of his products and companies – SpaceX, Tesla Model X.
After taking over Twitter in October, Musk said the purchase would “accelerate” the creation of the mysterious X super app “for everything.” It could, the entrepreneur said, become something like China’s WeChat, a messaging/social networking/payments app that boasts a billion users; and Twitter features should play an important role in it.
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