X, the social media platform formerly known as Twitter, is facing a major crisis as more and more advertisers are pulling out of the platform due to its owner Elon Musk’s controversial and antisemitic posts. According to a report by The New York Times1, X could lose as much as $75 million in advertising revenue by the end of the year as dozens of major brands pause their marketing campaigns after Musk promoted a post that accused Jewish people of pushing hatred against whites2.
Musk, who is widely regarded as the richest man in the world and the CEO of Tesla and SpaceX, has been using X as his personal outlet to express his opinions on various topics, often sparking outrage and criticism from the public and the media. On November 17, 2023, Musk replied to a post that read: “Jewish communties [sic] have been pushing the exact kind of dialectical hatred against whites that they claim to want people to stop using against them.” Musk wrote this was "the actual truth."2
This post was widely condemned as antisemitic and racist by many organizations and individuals, including the Anti-Defamation League (ADL), a watchdog group that fights against antisemitism and discrimination. The ADL’s CEO Jonathan Greenblatt responded: "At a time when antisemitism is exploding in America and surging around the world, it is indisputably dangerous to use one’s influence to validate and promote antisemitic theories."2
Musk did not apologize for his post, but instead attacked the ADL, accusing it of “unjustly attacking the majority of the West, despite the majority of the West supporting the Jewish people and Israel.” He also claimed that the ADL "cannot, by their own tenets, criticize the minority groups who are their primary threat."2 He did not specify which minority groups he was referring to.
Musk’s posts have also drawn the attention and condemnation of the White House, which issued a statement on November 19, 2023, calling Musk’s actions “unacceptable and an abhorrent promotion of antisemitic and racist hate.” The statement also urged Musk to "use his platform responsibly and constructively, not to spread lies and hatred that undermine our democracy and our values."3
In the wake of Musk’s posts, several large companies have decided to suspend or withdraw their advertising from X, citing their commitment to diversity and inclusion and their rejection of hate speech and discrimination. Some of the companies that have joined the boycott include Apple, Comcast/NBCUniversal, Disney, European Union, IBM, Lionsgate Entertainment, Paramount Global, Warner Bros. Discovery, and IBM4. These companies represent some of the biggest and most influential advertisers in the world, and their departure could have a significant impact on X’s revenue and reputation.
According to The New York Times, X typically earns the most money in the last months of the year, as brands ramp up their spending for the holiday season. However, this year, X may see a sharp decline in its revenue, as the boycott could cost it up to $75 million, or about 10 percent of its projected annual revenue1. This could also affect X’s stock price, which has already dropped by more than 20 percent since Musk’s posts3.
X’s CEO Linda Yaccarino, who was handpicked by Musk, has tried to defend the platform and its owner, stating that X has been “extremely clear about our efforts to combat antisemitism and discrimination.” She also claimed that X has been working hard to protect its advertisers from having their ads displayed next to hateful and offensive content3. However, a report by Media Matters, a progressive watchdog group, has contradicted Yaccarino’s claims, showing that many major brands’ ads were placed next to posts that endorsed Adolf Hitler and the Nazi party3.
Musk has not shown any signs of backing down or changing his stance, despite the backlash and the boycott. He has threatened to sue Media Matters and other “fake advocacy groups” that he believes are trying to suppress free speech and harm his platform3. He has also said that he will stick to his principles and that "karma is real."2
It remains to be seen how X will cope with the loss of advertisers and the damage to its image, and whether Musk will face any legal or regulatory consequences for his posts. X, which was once one of the most popular and influential social media platforms in the world, may now be facing an uncertain future.
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