Musk’s Outburst Puts the Survival of X in Jeopardy

Musk's Outburst Puts the Survival of X in Jeopardy

Elon Musk’s recent verbal attack on advertisers distancing themselves from X (formerly Twitter) raises the specter of the social network’s demise, just a year after Musk assumed control. In a fiery rebuke, Musk criticized advertisers who abandoned X following warnings from Media Matters about ads appearing alongside neo-Nazi posts. The exodus includes major names like Walmart, IBM, Disney, Paramount, NBCUniversal, and Lionsgate. Musk, who had previously stirred controversy with a tweet on an anti-Semitic conspiracy theory, directed his anger towards advertisers, suggesting the survival of X might be at stake.

Analyst Jasmine Enberg warns that Musk’s confrontational approach may prolong the advertiser boycott, potentially endangering X’s future. Musk expressed concern that the boycott could lead to the company’s demise, blaming advertisers for the potential fallout. Data from SensorTower indicates a significant drop in spending by top US advertisers on X, raising the stakes for the platform. With X’s user base estimated to have declined by 45%, and influential accounts disengaging, the social network faces both financial and operational challenges.

Despite Musk’s reduction of staff and ongoing financial concerns, X still boasts around 2,000 employees and substantial fixed costs. Musk’s acquisition debt, now borne by X, adds another layer of financial pressure. Musk hinted that he might not intervene if X faces bankruptcy due to an advertiser boycott, emphasizing the potentially dire consequences for the platform.


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