A real-world example of how intellectual property can seriously impact the value of a company is currently playing out with X, the platform formerly known as Twitter. The branding of this company, a type of intellectual property, was one of its most valuable assets when it was purchased by Elon Musk for $44 billion in October 2022. The rebranding in July 2023 sent shockwaves through the tech world because most of those people recognized that such a dramatic change would mean a significant value loss due to the immense value held in this intellectual property.
In the end, analysts estimated that, despite still being in the same building and employing much of the same business strategy, the company lost as much as $20 billion in value by saying so long to its iconic blue bird, the branded posts known as "tweets," and the name "Twitter." Although X is no longer publicly traded, it's estimated to be worth between $4 billion and $19 billion today, in part due to the loss of this incredibly valuable intellectual property.