Twitter's 'Parangsae' Sent, Musk Brings 'X'... Will the Super App Vision Succeed? (Summary)

Twitter CEO "Revamp at the Speed of Light"
Brand Value Expected to Take a Hit Over 5 Trillion
Focus on Sharp Decline in Thread Users

On the 24th (local time), Elon Musk sent the iconic Twitter logo, the "blue bird," into history. Instead, a black alphabet "X" took its new place. As Twitter, which has been a representative brand in the social networking service (SNS) market for 17 years, faces the biggest change in its history, competition with Meta Platforms' Threads, Facebook's parent company, is intensifying, drawing attention to who will emerge as the winner in the future.

It is still uncertain whether this overhaul will establish itself as the realization of Musk's long-held vision of a super application (app). On the contrary, some express concerns that Twitter's existing brand value, estimated at a minimum of 5 trillion won, could be shaken.

[Image source=Reuters Yonhap News]

Will Twitter Become an App Where Everything Is Possible... "Developing Video, Messaging, Banking, etc."

On Twitter's website, the previous blue bird logo was replaced by a new logo featuring a white letter X on a black background. Since its founding in 2006, Twitter had used the blue bird as its logo. Although the emblem changed several times, the current logo has been Twitter's symbol since 2012.

Twitter's changes are happening rapidly from day one. The New York Times (NYT) reported that photos inside the building confirmed the appearance of the X logo in Twitter's internal cafeteria. Additionally, meeting rooms featured words emphasizing the letter X, such as "eXposure" (meaning exposure) and "eXult" (meaning to be jubilant).

Linda Yaccarino, Twitter's CEO, stated in an email to employees that "we are undergoing a major overhaul." She wrote, "The company has an inventor's mindset" and "enjoys moving at the speed of light." She added, "X will continue to develop experiences in video, audio, messaging, banking, and payments that users can enjoy," explaining that she and Musk plan to "work with all teams" to achieve this.

[Image source=Reuters Yonhap News]

The logo change was implemented just one day after Musk, Twitter's chairman and chief technology officer (CTO), announced the logo replacement. Musk had stated the day before on Twitter, "We will soon say goodbye to the Twitter brand, and gradually to all birds (bird emblems)." Later that night, he posted a photo of the headquarters building displaying the "X" symbol on Twitter.

The new logo, X, reflects Musk's vision of transforming Twitter into a "super app" offering a wide range of functions such as messaging, payment processing, and remote vehicle hailing. When he acquired Twitter last year, he expressed his determination by saying, "I will create an app 'X' where everything is possible." In April of this year, Twitter's legal name was changed from "Twitter Inc." to "X Corp."

What Does the X Identity Mean to Musk... Even Purchased the Domain

Musk's decision to change Twitter's logo despite the risks of rebranding is interpreted as a step toward building his "X kingdom." The letter X is directly linked to Musk's identity. The online bank "X.com," which he co-founded in 1999, merged with Confinity, a simple payment company, in 2000 to become PayPal. X.com was Musk's second startup.

Sixteen years later, in 2017, Musk repurchased the X.com domain from PayPal. He acquired only the X.com domain without touching other PayPal businesses. After purchasing the domain, Musk explained on Twitter, "I currently have no plans, but it holds great sentimental value to me."

Until recently, the domain was unused, but now entering it redirects to Twitter's homepage. This is interpreted as the beginning of Musk's move to establish Twitter as the forefront of the X kingdom.

Elon Musk Photo by Reuters Yonhap News

The letter X can also be easily found in other companies owned by the world's richest man, Musk. The AI startup he recently launched is named "xAI," emphasizing the letter X. His space company is SpaceX. His flagship electric vehicle company, Tesla, also uses "Model X" as a vehicle name.

Evaluated as a "Risky Gamble"... "Musk Is the Twitter Killer"

Some experts describe Musk's decision as a "risky gamble." The blue bird is Twitter's symbol. According to Bloomberg, Twitter's brand value is estimated in the market to be at least $4 billion (about 5.14 trillion won) up to around $20 billion.

Brand valuation consultancy Brand Finance estimates Twitter's brand value at $4 billion, a 32% drop since last year. Since Musk's acquisition, advertising revenue has halved, and the brand value has declined due to his major changes and various disruptions. Brand Finance values Facebook's brand at $59 billion and Instagram's at about $47.4 billion.

Vanderbilt University estimates Twitter's brand value to be similar to another SNS, Snapchat, at $15 billion to $20 billion, Bloomberg reported.

[Image source=Reuters Yonhap News]

Jasmine Enberg, an analyst at Insider Intelligence, told CNBC, "(Today, with the logo change) is a gloomy day for many Twitter users and advertisers," adding, "It is clear evidence that the Twitter of the past 17 years is now gone and will not return." She also said, "Twitter's rebranding reminds us that Elon Musk himself is soon to be the 'Twitter killer,' not Threads or other apps."

Alan Adamson, co-founder of marketing and brand consulting group Metaforce, called it "a completely irrational decision from a business and brand perspective," and said, "To me, this (Twitter's logo change) looks like the fastest dismantling and collapse of a business and brand."

Mike Frouks, vice president of research firm Forrester, emphasized to the NYT that the phrase "to Twitter" being commonly used in everyday life means that a company's brand has permeated social culture. He evaluated, "Musk is wiping out 15 years of brand value created by Twitter at once and trying to start over from scratch."

Amid Threads' Declining Daily Users... "Musk Draws Attention"

However, the success or failure of these changes will likely depend on whether Twitter users continue to use the service.

Since Musk's acquisition, Twitter has already undergone significant changes, so it is analyzed that how the service itself changes and how users respond to it are more important than just the logo change. Since Musk's acquisition in October last year, Twitter has laid off many employees, introduced the paid subscription Twitter Blue, and applied post restrictions.

Brendan Gahan, chief social officer at advertising agency Mechanism, told the Wall Street Journal (WSJ), "The recent announcement about the rebrand is unlikely to shake advertisers' minds much," adding that Twitter will ultimately need to send a message that the brand is safe to win advertisers' trust.

[Image source=Reuters Yonhap News]

Above all, with Mark Zuckerberg, CEO of Meta Platforms, launching a new text-based SNS called Threads targeting Twitter, attention is focused on how Twitter's changes will establish its position in the SNS market. Threads attracted great interest as Twitter's "only rival" immediately after its release earlier this month, but daily users and usage time sharply declined within two weeks, and it has yet to firmly establish itself.

Ni Aheney, chief strategy officer at digital advertising agency Tinuiti, evaluated that this rebranding will help shift attention from Threads back to Twitter. Nick Miaritis, chief customer officer at another advertising agency VaynerMedia, said, "The most interesting point in this rebranding process is that Musk has attracted millions of people's attention with diverse content and made platform users make this decision."

In fact, after Twitter's rebranding announcement, hashtags such as '#RIPTwitter' and '#WelcometoX' have appeared on Twitter and gained popularity.

This content was produced with the assistance of AI translation services.