Elon Musk’s social media platform, X, is in trouble due to potential financial losses. It might lose about $75 million in advertising money by the end of this year. This problem began when famous companies like Walt Disney and Warner Bros Discovery stopped their ads on X after Elon Musk supported a post with anti-Semitic content.
To fight back, X is taking legal action against Media Matters, a group that criticized them. Media Matters claimed ads for big brands like Apple and Oracle showed up next to posts promoting Adolf Hitler and the Nazi party.
Internal papers show that over 200 ads from companies like Airbnb, Amazon, Coca-Cola, and Microsoft have stopped or might stop showing on X.
As of Friday, X is at risk of losing $11 million in revenue, and the final amount isn’t sure yet. Some advertisers might come back, while others might spend more. Reuters asked X for comment, but they haven’t responded yet.
The problem started when Elon Musk bought X in October 2022 and made rules to limit content moderation. This made advertisers leave, and it led to more hate speech, say civil rights groups.
Reports say X’s ad money in the US has dropped at least 55% every month since Musk took over. This shows that X is facing big problems keeping advertisers and a good reputation.
