50% of Big Brands Spend Nominal Sums on X to Avoid Musk's Wrath

Big brands are spending small amounts on X to avoid public fallout with Elon Musk. Marketing executives report that companies feel pressured to allocate nominal sums to X due to Musk’s high-profile role and his legal actions against groups that stopped advertising after his $44 billion acquisition in late 2022. X recently added Shell, Nestlé, Pinterest, and Lego to its legal case. The goal is to spend just enough to stay off Musk’s “naughty list.” This strategy stems from the fear that a negative comment from Musk could cause a company’s stock price to plummet, turning a multimillion-dollar risk into a multibillion-dollar one. X was recently acquired by Musk’s xAi for $45 billion, including debt. Musk plans to merge the data, models, and talent of both companies. Despite these moves, X aims to restore advertising revenues to 2022 levels, a target set by Musk and X CEO Linda Yaccarino, to counteract the impact of brands boycotting or avoiding the platform.

Source: arstechnica.com