According to the New York Times, Elon Musk’s social media company X could face a potential loss of $75 million in advertising revenue by the end of the year due to major brands pausing their marketing campaigns.
Last week, Musk supported an antisemitic post on the platform, leading companies like Walt Disney and Warner Bros Discovery to halt their advertisements on the site, formerly known as Twitter.
In response, X has filed a lawsuit against media watchdog group Media Matters, claiming that the organization defamed the platform with a report stating that ads for major brands such as Apple and Oracle appeared alongside posts promoting Adolf Hitler and the Nazi party.
Internal documents seen by The New York Times reveal that over 200 ad units from companies like Airbnb, Amazon, Coca-Cola, and Microsoft have either paused or are considering pausing their ads on the social network.
According to the report, X stated that $11 million in revenue is at risk, with the exact figure fluctuating as some advertisers return to the platform while others increase their spending.
Reuters’ request for comment was not immediately answered by the company.
Civil rights groups claim that advertisers have been fleeing X since Musk acquired it in October 2022 and reduced content moderation, resulting in a significant increase in hate speech on the site.
Reuters previously reported that the platform’s U.S. ad revenue has declined by at least 55% year-over-year each month since Musk’s takeover.
