Elon Musk's Controversy On X, Analysts Predict An Increase In Advertisers Resigning

JAKARTA - Some advertisers are expected to leave Elon Musk's social media platform X after the billionaire blasphemed a number of big names in the media industry leaving the platform. This was said by analysts on Thursday, November 30.

Walt Disney and Warner Bros. Discovery suspended ads on X earlier this month after Musk provided his support for anti-semitic posts that incorrectly stated members of the Jewish community provoked hatred of white people.

After apologizing for his post on the New York Times DealBook on Wednesday, November 29, Musk let go of anger with harsh words against a number of advertisers leaving the platform.

The Tesla leader acknowledged that the continued boycott by advertisers could result in bankruptcy X, formerly known as Twitter, but suggested that the public would blame the brands and not himself for the potential fall.

The company has been criticized for less stringent content moderation, especially from advertisers who don't want their ads to appear next to inappropriate content.

"We believe there is a risk that more companies will stop advertising on X, at least for a while," said DA analyst Davidson & Co Tom Forte.

"Adil said that this makes the company's subscription efforts more important and has the potential to mean that more than half of its revenue may have to come from subscriptions," he said.

The monthly ad revenue on X in the US has fallen at least 55% year-on-year each month since Musk bought the company in October 2022.

"Musk stated that Twitter is now worth less than the 44 billion US dollars he paid for it. It's hard to argue that it will change quickly if advertisers feel offended by what he said yesterday," said Russ Mould, investment director at AJ Bell.