In a new tirade against advertisers, Elon Musk filed a lawsuit against a group of companies for…
Not advertising on his platform X?
Musk is alleging that these companies have conspired to stop advertising as a boycott…
Depriving the social site of billions in ad revenue.
Does this case have any legs to stand on?
Elon Musk’s Latest Lawsuit
When Musk first bought X, formerly Twitter, in 2022…
He began by cutting thousands of jobs at the company, primarily in content moderation. This began the brand’s rebrand as a site dedicated to free speech…
And has since turned the website into what critics call “a haven of unmoderated speech…”
CAUSING HUNDREDS OF BRANDS TO CEASE ADVERTISING ON THE SITE
Brands like Disney, Apple, and Lionsgate stopped advertising on X…
When Musk endorsed antisemitic ideology on the platform.
With the lack of advertisers, X’s valuation plummeted…
The site is now worth 70% less than what Musk originally bought it for.
Now, with this lawsuit, Elon Musk is enacting his revenge.
The companies being sued include Unilever, Mars, CVS Health, Orsted (renewable energy firm), and the World Federation of Advertisers. The suit states that this alleged boycott is harming the financial future of X.
Chief executive of X, Linda Yaccarino, stated…
“PEOPLE ARE HURT WHEN THE MARKETPLACE OF IDEAS IS CONSTRICTED. NO SMALL GROUP OF PEOPLE SHOULD MONOPOLIZE WHAT GETS MONETIZED.”
Elon Musk is no stranger to lawsuits…
But experts doubt this one in particular is going to go his way.
Chance Of Success Is Slim
Legal experts are skeptical that this lawsuit from Elon Musk will fall in his favor.
For the suit to be a win for X, the company will have to prove that the brands listed in the suit colluded and agreed collectively to boycott the website…
Something incredibly challenging to achieve.
However, the companies accused can also argue that the boycott was political or social…
Which is an action protected by the first amendment.
But even when all is said and done, if Elon Musk CAN prove that these companies are illegally boycotting the site…
X STILL CANNOT FORCE THESE COMPANIES TO ADVERTISE ON THE SOCIAL SITE.
Ultimately, Elon Musk wanted a website with lax content moderation…
Which paved the way for hateful rhetoric and potentially illegal content…
So if this CEO is upset that advertisers aren’t doing business with the website any longer…
Elon Musk might just have to reap what he sows after this lawsuit.
Be Great,
GCTV Staff
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.
We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
