Twitter could soon face new competition from Facebook and Instagram parent company Meta. It plans to release a new product similar to the text-based social media platform.
Moneycontrol first reported on the plans for the new app “codenamed P92,” citing people familiar with the matter. Then, Meta confirmed the report.
“We’re exploring a standalone decentralized social network for sharing text updates,” said a statement from the company provided to Moneycontrol, Reuters, and CNN Business. “We believe there’s an opportunity for a separate space where creators and public figures can share timely updates about their interests.”
According to Moneycontrol, the new app would be on ActivityPub, a “decentralised social networking protocol powering Twitter rival Mastodon and other federated apps.”
Mastodon is a Twitter-like service that launched in 2016. After criticism following Tesla CEO Elon Musk’s takeover of Twitter late last year, the service received more attention.
Moneycontol’s report indicates that P92 would be branded as part of the Instagram social media app. Users would be able to register and login through their Instagram credentials.
A copy of an internal product brief viewed by the outlet “elaborates on the functioning and various product features,” that the new app might include.
Per the outlet, it isn’t clear whether the app is “still at an idea-stage,” or if development has started. One source said it is still a work in progress.
News of the potential new Twitter competitor comes on the heels of The Wall Street Journal reporting that “the clock is ticking for Elon Musk to put Twitter Inc. back on a path to profitability.”
According to the outlet, Twitter “continues to burn through cash nearly five months after the billionaire’s $44 billion takeover,” and his rollout of Twitter Blue, a service that charges for app verification and offers other features.
Despite the Twitter Blue launch and a layoff of around 75% of Twitter’s workforce, the company’s “finances remain strained in part because of an advertiser pullback and high-cost debt,” said the Journal. In fact, Twitter was struggling financially even before Musk purchased it.
Since he took over, Musk has received criticism to his changes to the social media site, as well as the way he handled employee issues. Just this week, he landed in hot water over Twitter exchanges in which he mocked a disabled employee.
However, Meta was apparently inspired by some of Musk’s changes, and announced a plan to potentially offer paid verification.
During a Morgan Stanley conference Tuesday, Musk also said that Twitter could become cash-flow positive in the second quarter.
“On average, Twitter is expected to burn $453 million in cash annually through 2028, according to an analysis of public information by Jeffrey Davies, a former credit analyst and founder of data provider Enersection LLC,” said The Wall Street Journal. According to the outlet, there are several avenues he could take to improve the company’s financial situation.
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