Elon Musk's social media venture, X, faces a potential loss of up to $75 million in advertising revenue by year-end, as a wave of major brands suspends marketing campaigns, according to a report by The New York Times.
Following Musk's endorsement of an antisemitic post on the platform, companies like Walt Disney and Warner Bros Discovery have paused advertising on the site, previously known as Twitter.
In response, X has taken legal action against Media Matters, a media watchdog group, accusing them of defaming the platform with a report linking ads from major brands like Apple and Oracle to posts promoting Adolf Hitler and the Nazi party.
Also read/watch - LIC Chairman explores establishment of fintech division
Internal documents seen by The New York Times reveal over 200 ad units from companies such as Airbnb, Amazon, Coca-Cola, and Microsoft. Many have either halted their ads or are considering doing so on the social network.
X disclosed on Friday that approximately $11 million in revenue was under threat. The exact figure fluctuates due to some advertisers returning to the platform while others increase spending, as reported.
Since Musk's acquisition in October 2022, advertisers have been leaving X amidst reduced content moderation, leading to a surge in hate speech, according to civil rights groups.
Reuters previously reported that the platform's U.S. ad revenue has consistently declined by at least 55% year-over-year each month since Musk's takeover.