The Disastrous Cost Of Elon Musk's Twitter Rebrand
After months of teases, the Twitter brand is being phased out by owner Elon Musk. The rebrand officially began on July 23 with the announcement that the social media giant would soon become "X," described on Twitter by CEO Linda Yaccarino as "a global marketplace for ideas, goods, services, and opportunities." However, this ambitious retooling might come at a hefty cost. Bloomberg reports that X Corp., the private company established by Musk to operate the platform, is estimated to lose anywhere from $4 to $20 billion worth of value.
Bloomberg's analysts and sources claim that the Twitter rebrand is already proving to be a disastrous mistake given how commonplace Twitter has become. Nowhere is this arguably more apparent than the blue bird icon that was synonymous with the original network, co-founded by former CEO Jack Dorsey in 2006. Much like the blue "F" for Facebook and the pink camera for Instagram, the icon was immediately recognizable and became essential for anyone wanting to market themselves to others.
However, using a black-and-white Unicode X will likely prove to not be as easily remembered or marketable. In fact, in Bloomberg's report, Metaforce marketing consultant Allen Adamson has called the move "completely irrational" for itself and its users. Due to how quickly these and other changes have been implemented throughout Musk's control, this might not be an inaccurate assessment.
"To me, it's going to go down in history as one of the fastest unwinding of a business and brand ever," Adamson told Bloomberg.
Off to a rocky start
The aftermath of the "X" rebrand announcement has been plagued with potential setbacks and issues in a remarkably short amount of time. Yaccarino's announcement of X's planned scope was met with criticism, particularly in her vague reveal that it will be powered through artificial intelligence. One user even compared it to the Danish folk tale "Emperor's New Clothes," basically inferring the statements weren't substantiated.
Other rebranding problems commenced almost immediately. The San Francisco Police Department forced contractors to halt the removal of the Twitter signage outside its headquarters. There were allegedly no permits or requests filed to allow the deconstruction to proceed, which could have been dangerous for passersby. It is unclear when the rest of the removal process will resume.
Most damning, however, is the fact that the name of X was not trademarked by Musk or X Corp., despite the tech magnate having a well-documented interest in the name. In fact, Meta appears to have a trademark for a product called "X," which its patent filing describes as being suitable for "online social networking services." All of these roadblocks threaten to destroy the value and goodwill the Twitter brand has gained.
"It took 15-plus years to earn that much equity worldwide," Siegel & Gale brand communication Steve Susi told Bloomberg, "so losing Twitter as a brand name is a significant financial hit."