In a recent announcement, tech mogul Elon Musk proclaimed that the social media platform formerly known as Twitter, now called X, has achieved a remarkable milestone with over 540 million monthly users. This revelation comes at a critical juncture for the company, as it navigates organizational changes and seeks to revitalize its advertising revenue, which has experienced a decline in recent months.
Under Musk’s stewardship, X has undergone a series of transformative measures aimed at bolstering its market position. One notable initiative was the introduction of the verified blue tick as a paid service, allowing users to authenticate their accounts. Additionally, the platform has started sharing a portion of its ad sales with select content creators, incentivizing them to produce engaging and high-quality content.
The appointment of former NBCUniversal advertising chief Linda Yaccarino as the CEO of X further underscores the company’s commitment to enhancing its ad sales. Musk’s keen focus on this revenue stream is particularly interesting, considering the company’s simultaneous efforts to expand its subscription-based earnings. This strategic shift reflects X’s determination to diversify its income streams and mitigate the negative impacts of reduced advertising revenues.
Despite the company’s success thus far, there are legal complications surrounding Musk’s decision to rebrand Twitter as X. Trademark attorney Josh Gerben warns that there is a high probability of litigation arising from the use of the letter “X” in the new platform’s name. Gerben identifies approximately 900 active U.S. trademark registrations tied to the letter “X,” belonging to various industries. This potentially leaves X vulnerable to legal challenges as its name could be perceived as infringing upon existing trademarks held by companies such as Meta Platforms and Microsoft.
Meta Platforms, the parent company of the newly launched Threads platform that directly competes with X, holds a federal trademark for a blue-and-white letter “X” in the software and social media domain. Microsoft also possesses an X trademark specifically related to its Xbox video game system. While Meta and Microsoft may not initiate legal action unless their brand equity is threatened, X will likely face scrutiny and potential legal battles as it defends its chosen name in the future.
With strategic moves to boost advertising revenue, such as the implementation of the verified blue tick and the appointment of Linda Yaccarino as CEO, X aims to solidify its position as a revenue-generating platform. However, potential legal hurdles loom on the horizon, ignited by its rebranding as X and the clash with existing trademarks. Only time will tell how the company navigates these challenges and whether its user growth will translate into long-term sustainability and profitability.