Bankruptcy looms: With outburst, Elon Musk puts the survival of X in the balance
Elon Musk's verbal assault on advertisers who have shunned X (formerly Twitter) threatens to sink the social network further, with the tycoon warning of the platform's demise, just one year after taking control.
"If somebody's gonna try to blackmail me with advertising, go fuck yourself," a visibly furious Musk told an interviewer in New York in front of an audience of the US business elite this week.
Musk was lashing out at the advertisers who had abandoned his platform after Media Matters, a left-wing media watchdog group, warned big companies that their ads were running aside posts by neo-Nazis.
Walmart on Friday was the latest to join the exodus, following the footsteps of IBM, Disney, Paramount, NBCUniversal, Lionsgate and others.
The latest controversy broke earlier this month when Musk declared a tweet exposing an anti-Semitic conspiracy theory as the "absolute truth."
Musk apologized for his tweet, even taking a trip to Israel to meet with Prime Minister Benjamin Netanyahu, but on Wednesday he targeted his anger squarely at advertisers.
"It doesn't take a social media expert to know that publicly and personally attacking the people in companies that pay X's bills is not going to be good for business," said analyst Jasmine Enberg of Insider Intelligence.
"Most advertiser boycotts on social media companies, including X, have been short lived. There's a potential for this one to be longer," she added.
Musk said the survival of X could be at stake.
"What this advertising boycott is going to do is kill the company," Musk said.
"Everybody will know" that advertisers were those responsible, he angrily added.
Even before the latest bust up, Insider Intelligence was forecasting a 54-percent contraction in ad sales, to $1.9 billion
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