Photo Credit Bloomberg
Twitter Inc., under the ownership of Elon Musk, has announced plans to change its iconic logo, removing the long-standing blue bird symbol. Musk tweeted on Saturday, inviting submissions for a new logo and promising a swift worldwide rollout if a suitable design is received.
The decision comes approximately six months after Musk’s acquisition of Twitter for a staggering $44 billion, after which he merged the company into a new entity called X Corp. In a recent post, Musk expressed his intention to bid farewell to the Twitter brand, indicating that the bird motif will be gradually phased out.
Despite Twitter’s website continuing to refer to the light-blue bird as its “most recognizable asset” and providing guidelines for its proper use, Musk seems determined to proceed with the logo change, citing that it should have happened much earlier. In a Twitter Spaces appearance, Musk humorously mentioned “cutting the Twitter logo off the building with blowtorches,” likely alluding to the modifications he has already made to the company’s headquarters in San Francisco.
While Musk has implemented several changes to Twitter since taking over, the impact on stakeholders has been less than favorable. Fidelity notably marked down the value of its holdings in the company by two-thirds in May, and ARK Investment Management, led by Cathie Wood, disclosed a 47% write-down of its stake, as reported by the Wall Street Journal.
In March, Musk had expressed optimism about Twitter’s financial prospects, particularly in regard to improving the relevance of its advertising. He had even predicted that the company could break even on a cash-flow basis in the second quarter. However, these expectations have not materialized as Twitter’s cash flow remains in negative territory, which Musk attributed to a significant drop in advertising revenue, coupled with the burden of the company’s debt load.
As the logo change looms on the horizon, Twitter and its stakeholders brace for further transformations under Elon Musk’s leadership.
Source: Bloomberg
