Elon Musk’s X in Danger of Losing $75 Million by 2023

X (formerly Twitter) is facing increasing challenges in the advertising realm. In recent times, prominent companies such as Apple, IBM, and Comcast have withdrawn from displaying ads on the platform. Adding to the predicament, a recent report suggests that the social media platform, owned by Elon Musk, could suffer a financial loss of up to 75 million dollars by the conclusion of 2023 as a result of this corporate exodus.

It all started after some reports surfaced claiming that Musk was endorsing anti-Semitic messaging on the platform last week. At X, Musk could be seen agreeing to a poster that said Jewish communities hate white communities. This has led several companies, including Walt Disney and Warner Bros Discovery, to suspend their ads on the site formerly known as Twitter.

X faces advertising problems

X has attacked and sued media watchdog group Media Matters, claiming the organization defamed the platform with a report that ads from major brands such as Apple and Oracle had appeared alongside messages promoting Adolf Hitler and the Nazi Party.

Internal documents seen by The New York Times this week show more than 200 advertising units from companies such as Airbnb, Amazon, Coca-Cola and Microsoft, many of which have stopped or are considering stopping advertising on the social network. said.

X said Friday that $11 million in revenue was at risk, with the exact number fluctuating as some advertisers returned to the platform and others increased spending, according to the report.

The company did not immediately respond to Reuters’ request for comment.

Advertisers have fled X since Musk bought it in October 2022 and reduced content moderation, leading to a sharp increase in hate speech on the site, according to civil rights groups.

Reuters previously reported that the platform’s US ad revenue has fallen at least 55 percent year-over-year in every month since Musk took over.

(via Reuters feeds)