Elon Musk is a personality in his own right. Beyond leading very important companies like Tesla or SpaceX, does not hesitate to enter into controversies and complaints. In fact, he recently threatened Apple with banning iPhones from its own employees over the partnership with Apple Intelligence. Now, Elon Musk has moved on to another issue related to economic viability of the company which he bought two years ago: Twitter.
During these two years under X, significant changes have taken place, one of the most notable being the disappearance of verification badges and the launch of payment plans. These The changes have caused some advertisers to stop trusting
Elon Musk slams advertisers for alleged X boycott
X’s accounts are not in the best shape. According to the New York Times, the turnover for the second quarter of 2024 was $114 million, a decrease of 53% compared to the same period of the previous year. Going back even further, in 2021, Twitter brought in $1.19 billion.
This fall greatly worries the board of directors of X and Elon Musk, so much so that they have decided to sue the Global Alliance for Responsible Media (GARM). This is a group that carries 90% responsible brands of global advertising spending, with companies as large as Unilever, Mars and Ørsted.
The 44-page lawsuit filed in Texas says that after Twitter’s acquisition, 18 advertisers left the social network and many others. They cut their advertising budgets by 70%. They suspect that all this happened after a report by the Global Alliance for Responsible Media in which they expressed concern about Twitter’s security standards after its acquisition by Elon Musk. The social network also specifies that GARM violated antitrust laws
Apple already pulled its X ad and Elon Musk didn’t like it at all
The tensions between Elon Musk and Apple have been going on for a long time. So much so that Elon Musk proposed to Apple to buy Tesla and Tim Cook did not even show up for the meeting. Later, they had a controversy also related to advertising. And after a few Elon Musk’s anti-Semitic remarks
It is this tense climate that affects X and its advertisers in general. For example, Disney and IBM have also paralyzed campaignsIn the coming months we will see how the legal process continues or if it ends up being resolved by an amicable agreement as already happened between Elon Musk and Tim Cook in 2022, although years later they have continued to have clashes.
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