Twitter Is Now 'X': How Other Rebrands Have Succeeded

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Companies change their names to reverse declining revenue, meet changing customer preferences, or convince consumers that the company is more than just a name. And it works for some, such as Facebook's transformation into Meta Platforms (META), but not all. This week, Twitter dropped the iconic bird logo and replaced it with the letter ‘X’ to make a big splash in the evolving company following Elon Musk's takeover in April. It is still unclear whether the change to the logo will attract more users to the struggling social media brand. Key Takeaways Twitter replaced the bird with the letter 'X'. Facebook, Apple, and Subway found some success with rebranding to expand a company's focus. When Musk bought Twitter late last year, he expressed a desire to create an "everything" app called "X" that would be the go-to destination for members who wanted to shop, chat, or just be entertained. Linda Yaccarino, Twitter's CEO, reinforced that desire, saying in a tweet, “X is the future state of unlimited interactivity—centered in audio, video, messaging, payments/banking—creating a global marketplace for ideas, goods, services, and opportunities.” It is still early to say if the rebranding has, or will, work. But based on other companies' similar expansions, it could. Facebook Entered the Metaverse Facebook rebranded the parent company as Meta Platforms, Inc (META) in 2021 but kept the social media platform's name the same. The move was meant to signify the overall company’s transition beyond social media, signaling its intention to lean into the metaverse. At the time, Facebook was under a lot of scrutiny for its practices on Facebook, leading many to speculate that the name change was a way to distance itself from negative publicity. The move seems to have worked. In the years since, the company launched the Meta Quest 3 headset, and is reporting strong advertising revenue by A.I.-driven content. Meta's second-quarter revenue, at almost $32 billion, increased 11% over the same period last year and grew at the fastest clip since the end of 2021. Apple Went Beyond Computers Similarly, when Apple (AAPL) was founded by Steve Jobs, Ronald Wayne, and Steve Wozniak in 1976, it was known as Apple Computers, according to the U.S. Chamber of Commerce. But, in 2007, Jobs changed its name to Apple to shift the focus beyond computers to consumer electronics. The company, which subsequently became the first publicly traded U.S. company valued at $1 trillion, went on to enormous success with iPods, iPhones, iPads, and smartwatches. Rebrands Aren't Just for Tech Companies Rebrands aren't just about expansion; sometimes they are about user perception. The fast-casual sandwich shop Subway was founded in 1965 as Pete’s Super Submarines. The founder, Fred DeLuca, received a $1,000 investment from Dr. Peter Buck to start the shop, and the company was named after him. But customers found the name hard to pronounce, and it was changed to Subway in 1968. Today, Subway has become one of the world’s largest restaurant brands, serving customizable sandwiches to millions of people across more than 100 countries in more than 37,000 restaurants every day. Other Brands Struggeled to Find Rebranding Success Not all name changes are successful. In 2011, Netflix (NFLX) attempted to split its business in two, with Netflix offering streaming services and naming its DVD-by-mail service Qwikster. However, customers and investors disliked the name change, and the company’s stock fell. The company did a U-turn and returned to its original name and business model. When the Gap tried to refresh its logo in October 2010 to a bold black Gap with a small blue square in the upper right-hand corner, the backlash was so extreme it returned to its original logo in just one week. Overstock.com attempted to change its name to O.co. But customers were confused by the change and the company quickly returned to using Overstock.com. The Bottom Line The market still appears unsure of the X rebrand's chances for success. "While Musk’s vision is to turn ‘X’ into an ‘everything app,’ this takes time, money, and people—three things that the company no longer has," said Mike Proulx, research director and vice president at Forrester. Time will tell if that's true.