After anti-Semitism scandal: X loses more advertising customers
A double scandal about anti-Semitism and Nazi content on Elon Musk's Twitter successor X is driving more and more major advertising customers to flee. According to media reports, Apple, Disney, Paramount and the Warner Group, among others, have stopped advertising on X.
The film studio Lionsgate also confirmed that ads had been suspended on the platform. The computer giant IBM had previously paused its advertising on X. According to the New York Times, the company wanted to spend one million dollars there this quarter.
IBM's decision was triggered by the fact that the company's ads were discovered on X alongside Nazi postings and anti-Semitic statements. The organization Media Matters showed how advertisements from IBM, Apple and the software company Oracle, among others, appeared on X alongside posts with positive statements about Adolf Hitler and the ideology of the National Socialists.
Sharp criticism from the White House
Musk also caused a controversy with approval for an anti-Semitic post, which earned him harsh criticism from the White House, among others. The post on X said, among other things, that Jewish people were spreading "hatred against white people". Musk wrote in response to the post on Wednesday that it contained the "actual truth".
In later statements, Musk did not move away from his position, but only qualified it slightly: he was referring to "some groups" such as the Jewish organization Anti-Defamation League (ADL), which spread "de facto anti-white racism and anti-Asian racism". He also reiterated that he believes there is a problem with racism against white people.
On Friday, Musk continued to be defiant. "Many of the biggest advertisers are the biggest oppressors of your right to free speech," he wrote to his followers on X. At the same time, he promoted the most expensive premium subscription without any advertising, which costs around 19 euros per month in Germany. Musk described Media Matters as "pure evil".
X's economic situation is difficult
X's economic situation is already difficult. Musk admitted several times that advertising revenue is only about half of what it was in the Twitter days. He is trying to raise more money through subscription offers. According to experts, however, this has not yet come close to compensating for the loss of advertising revenue.
At the same time, Musk is still the richest person in the world - at least on paper - and currently has a fortune of around 219 billion dollars, according to calculations by the financial service Bloomberg. However, the vast majority of this consists of his investments in the electric car manufacturer Tesla, which he runs, and his space travel company SpaceX.
Musk already had to sell Tesla shares and take out loans of around 13 billion dollars for the 44 billion dollar purchase of Twitter in October last year. These loans are now a burden on X and, according to media reports, it costs around one billion dollars a year to service them.
- Despite the challenges, Elon Musk promoted X's most expensive premium subscription without ads, priced around 19 euros per month in Germany, emphasizing the emphasis on free speech.
- IBM had to halt its advertising on X due to the discovery of its ads appearing alongside Nazi postings and anti-Semitic statements.
- Paramount and the Warner Group, along with Apple and Disney, have ceased advertising on X as a result of the double scandal involving anti-Semitism and Nazi content.
- Lionsgate also temporarily suspended ads on X following the controversy surrounding Elon Musk's approval of an anti-Semitic post on the platform.
Source: www.dpa.com
