X stands to lose up to $75 million

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Elon Musk’s social media venture, X, faces a potential loss of up to $75 million in advertising revenue by year-end, according to The New York Times. This comes as numerous major brands have suspended their marketing campaigns on the platform following Musk’s public support for a post deemed anti-Semitic last week. Notable names like Walt Disney and Warner Bros. Discovery have temporarily halted advertising on what was once known as Twitter.

In response to the situation, X has taken legal action against media watchdog group Media Matters, alleging that their report damaged the platform’s reputation. The report claimed that ads for prominent brands like Apple and Oracle appeared alongside content related to Adolf Hitler and the Nazi Party, citing internal documents seen by The New York Times. Over 200 advertising units for companies such as Amazon, Coca-Cola, and Microsoft were mentioned, with many temporarily pausing or contemplating the suspension of advertising.

X revealed on Friday that $11 million in revenue was at risk, noting that the precise figure was fluid as some advertisers returned to the platform while others adjusted their spending, as per The New York Times. The company has yet to respond to a request for comment from Reuters.

Reuters had previously reported that U.S. advertising revenues on X have consistently declined by at least 55 percent on an annual basis in every month since Musk acquired the platform.

This news has been read 693 times!

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