On Friday, Elon Musk announced that the social media platform X, previously known as Twitter, has reached a new milestone with over 540 million monthly users, according to a graph he shared.
This update on user numbers comes amidst significant organizational changes within the company as it seeks to enhance its advertising revenue, which has seen a decline in recent months.
The news is part of a series of assertions from X executives regarding increased user engagement, especially following the launch of Meta Platforms’ competing platform, Threads, on July 5.
Prior to Musk’s acquisition in October, Twitter reported 229 million monthly active users in May 2022. In November, Musk indicated that X had grown to 259.4 million daily active users.
Since taking control of the platform, Musk has implemented numerous product innovations and structural adjustments. Notably, the company introduced a paid subscription for the verified blue tick and started offering content creators a share of advertising revenues.
This past May, Musk appointed Linda Yaccarino, formerly of NBCUniversal, as CEO of X, indicating a focus on ad sales while also aiming to increase subscription income.
Earlier this month, Musk revealed that X is experiencing negative cash flow due to a nearly 50% drop in advertising income and a substantial debt burden, although he did not provide specific figures.
Additionally, the rebranding of Twitter to X may lead to legal complications, as both Meta and Microsoft hold intellectual property rights associated with the letter “X.” Legal challenges could be on the horizon given the widespread use of “X” in existing trademarks.
Trademark attorney Josh Gerben noted that there is a definite likelihood of legal action against X, citing nearly 900 active U.S. trademark registrations related to the letter across various industries.
Trademark owners can pursue claims of infringement if they believe that new branding could confuse consumers. Possible legal responses range from monetary damages to injunctions against the use of similar branding.
Microsoft has owned a trademark for “X” related to communications for its Xbox gaming system since 2003, while Meta holds a federal trademark for a blue-and-white “X” covering software and social media, registered in 2019.
Gerben suggested that neither Meta nor Microsoft is likely to initiate legal proceedings unless they perceive a threat to their brand equity connected to the letter “X.”
Efforts to reach representatives from Meta and Microsoft for comments were unsuccessful.
© Thomson Reuters 2023
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
