The social media platform X, owned by Elon Musk, is projected to potentially forfeit up to $75 million (approximately Rs. 625 crore) in advertising revenue by the end of the year, according to a report by the New York Times. This financial downturn is attributed to numerous high-profile brands halting their marketing initiatives on the platform.
A controversial endorsement by Musk of an antisemitic post last week has prompted several companies, including major players like Walt Disney and Warner Bros. Discovery, to suspend their advertising on the site previously known as Twitter.
In response to the backlash, X has initiated legal action against the media watchdog group Media Matters, claiming that the organization defamed the platform with a report that highlighted advertisements from prominent brands such as Apple and Oracle appearing alongside posts promoting Adolf Hitler and the Nazi party.
Internal documents obtained by the New York Times outline over 200 advertising units from companies including Airbnb, Amazon, Coca-Cola, and Microsoft, many of which have either paused or are contemplating pausing their ads on the platform.
The company indicated on Friday that $11 million (about Rs. 92 crore) in revenue is currently at risk, with the figure subject to change as some advertisers return and others ramp up their spending.
X has not yet responded to a request for comment from Reuters.
Since Musk acquired the platform in October 2022, advertisers have increasingly distanced themselves from X, following a reduction in content moderation that has led to heightened levels of hate speech, as highlighted by several civil rights organizations.
Reports have indicated that X’s advertisement revenue in the U.S. has experienced a decline of at least 55 percent year-over-year each month following Musk’s takeover.
© Thomson Reuters 2023
