Elon Musk’s decision to rebrand Twitter as ‘X’ has reportedly resulted in the loss of billions in brand value, leaving analysts and experts questioning the implications of this bold makeover.
What Happened: Musk has been making headlines again with his latest move to rebrand Twitter as ‘X’ and replacing the iconic bird logo with a black and white "X" emblem.
Experts estimate that Twitter’s brand value suffered a devastating blow, ranging from $4 billion to as much as $20 billion after Musk took these actions, reported Bloomberg.
See Also: ‘Wanna Bet?': Elon Musk Thinks People Will Start Calling Twitter ‘X,' And He Is Ready To Bet On It
While some analysts acknowledged the potential for Musk’s personal brand to influence Twitter positively, others criticized the rebranding as an ego-driven decision that could spell disaster for the company’s future aspirations.
The report noted that building banking and payments into the ‘X’ app would demand customer trust, something challenging to attain with a brand-new product name.
Steve Susi, the director of brand communication at Siegel & Gale, emphasized the gravity of the situation, stating that it took over 15 years for Twitter to amass such global brand equity, making the loss a substantial financial setback.
Todd Irwin, the founder of brand agency Fazer, pointed out that Twitter had achieved unparalleled recognition, with its bird decals adorning businesses and websites worldwide, solidifying its position as a cultural icon.
Why It's Important: Ad revenue at Twitter has already experienced a drastic decline of more than 50% since Musk’s acquired the microblogging site for $44 billion last year.
Previously, Twitter co-founder and former CEO Jack Dorsey commented on Musk's latest actions stating that the ultimate measure of the rebranded platform would be the “utility it provides,” not its name.
While this unexpected shift has shocked many long-time Twitter users who have grown accustomed to the platform's familiar look and feel, Musk said that this isn't a superficial makeover but a strategic step toward realizing his vision for the platform.
Image Credits – Shutterstock
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Read Next: From ‘Twitter’ To ‘X’ — Musk Reveals Reasoning Behind The Bold Rebranding Move
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