X staring at potential second round of advertiser exodus after Elon Musk's rant
Elon Musk's recent actions, as per a Reuters report. Walt Disney and Warner Bros. Discovery took decisive steps earlier this month by halting their advertising efforts on X.
The move came in response to Musk endorsing an antisemitic post. The backlash was followed by Musk apologising. However, when speaking about the incident at the New York Times DealBook event, Musk first expressed regret for his post, before launching into a profanity-laden diatribe against fleeing advertisers.
He accused the brands of "blackmail," with apparent criticism directed at Walt Disney CEO Bob Iger, who earlier commented that partnering with X had not been a positive association for their brand. Industry experts, including Lou Paskalis, founder of AJL Advisory, told Reuters the necessity for companies to safeguard their brand image amid advertisers leaving X. However, X's CEO Linda Yaccarino, in a memo to employees, commended Musk's interview as "candid and profound." She reinforced X's commitment to being an open platform without censorship, asserting that their principles were non-negotiable, as per the report.
Further, despite acknowledging the potential bankruptcy risk for X due to an extended advertiser boycott, Musk insinuated that public blame would fall on the brands rather than on him. But analysts, notably Jasmine Enberg from Insider Intelligence, pointed fingers at Musk, attributing X's possible demise to his actions, policy decisions, and confrontational remarks, the report said. The platform faces the alarming reality of losing not just corporate advertisers but also potential revenue from political candidates, a stream that re-emerged after X lifted its ban on political ads.
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