Elon Musk’s X Faces Potential $75 Million Ad Revenue Loss Amid Advertiser Boycott

Elon Musk’s social media platform, X, may witness a significant blow as it could lose nearly $75 million in advertising revenue by the end of the year, according to reports by The New York Times. The platform, formerly known as Twitter, has been grappling with major brands pausing their marketing campaigns following Musk’s endorsement of an antisemitic post last week.

Major companies, including Walt Disney and Warner Bros. Discovery, have suspended their advertisements on X, raising concerns about the platform’s financial outlook. X responded by filing a lawsuit against media watchdog group Media Matters, accusing the organization of defamation related to a report linking major brands like Apple and Oracle to posts promoting Adolf Hitler and the Nazi party.

Internal documents obtained by The New York Times revealed that over 200 ad units from companies like Airbnb, Amazon, Coca-Cola, and Microsoft are either halted or considering a pause in their ads on the platform. X stated that $11 million in revenue is at risk, with fluctuations as some advertisers return while others increase spending.

Since Musk’s acquisition of X in October 2022 and the subsequent reduction in content moderation, the platform has experienced a surge in hate speech, leading to advertisers fleeing the platform. Reports indicate a substantial decline of at least 55 percent year-over-year in the platform’s US ad revenue each month since Musk took over.