In an unexpected announcement, Twitter revealed that it has merged with a multi-functional app called X, owned by the tech mogul Elon Musk.
The revelation comes as part of a lawsuit filed against Twitter by right-wing activist Laura Loomer, who claims that the company violated federal racketeering laws when it banned her account in 2019.
The racketeering case was initially filed in U.S. District Court for the Northern District of California San Francisco Division on May 2, 2022.
According to a court filing, Twitter no longer exists as a separate entity and its assets have been merged into X Corp., a privately held corporation incorporated in Nevada with its primary place of business in San Francisco, California.
The legal document was signed by attorneys Johnathan Patchen, Michael Gottlieb, Meryl Conant Governski, Kristin E. Bender, and Yuhan Alice Chi of Willkie Farr & Gallagher LLP.
X Holdings Corp
In April of 2022, Musk registered three separate companies in Delaware under the umbrella of X Holdings Corp., all of which were designed to facilitate his purchase of Twitter, reports Slate.
The plan, according to sources, involves merging Twitter with X Holdings II while retaining the name and general corporate structure of Twitter, and continuing to operate under Delaware law.
X Holdings I, controlled by Musk, would serve as the parent company for the merged entity, while X Holdings III would take on the $13 billion loan provided by a group of big banks to help cover the $44 billion purchase, adds the report.
Super app rivaling WeChat
After completing the Twitter takeover in October, Elon Musk announced that this acquisition would accelerate the creation of an “everything app,” which would be named after the letter X.
He has described this app as a “super app” that could resemble China’s WeChat, the combination messaging/social networking/payment app with over a billion users. The functions of Twitter would play an essential role in this mega-size app.
Further, he also revealed his attachment towards “X” in various instances. His fascination with the letter began in 1999 when he founded X.com, an online bank that later merged with another company and became PayPal.
Over the years, the letter X has appeared in other ventures of Elon Musk, including SpaceX, Tesla’s Model X car, the three X Holdings corporations, and “Project X,” the official SEC-recognised name for Twitter’s $13 billion bank loan purchase.
This merger has yet to be announced publicly by Musk, leaving many to wonder about his intentions behind this move. However, until Musk provides further clarification on his plans, the motives behind this merger remain unclear.
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