Elon Musk’s Social Media Company X Faces Potential $75 Million Loss in Advertising Revenue by Year-End
San Francisco: According to a report by the New York Times, Elon Musk’s social media company X could experience a loss of up to $75 million in advertising revenue by the end of the year as numerous major brands suspend their marketing campaigns.
The reason behind this decline in revenue is Musk’s endorsement of an antisemitic post on the platform last week. As a result, companies such as Walt Disney and Warner Bros Discovery have decided to halt their advertisements on the site formerly known as Twitter.
In response, X has taken legal action against media watchdog group Media Matters, accusing them of defaming the platform with a report that claimed ads from prominent brands like Apple and Oracle were displayed alongside posts promoting Adolf Hitler and the Nazi party.
Internal documents obtained by The New York Times reveal that more than 200 ad units from companies including Airbnb, Amazon, Coca-Cola, and Microsoft have either paused or are contemplating pausing their ads on the social network.
The report states that X indicated a potential revenue loss of $11 million on Friday, with the exact figure fluctuating as some advertisers return to the platform while others increase spending.
Reuters reached out to X for comment, but there was no immediate response.
Civil rights groups have highlighted a surge in hate speech on X since Musk acquired the company in October 2022 and implemented relaxed content moderation policies.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
