Walmart Joins List of Companies Suspending Advertising on Elon Musk’s X

Walmart's Decision to Suspend Advertising

Walmart has recently made the decision to suspend its advertising on Elon Musk's social media platform, X (formerly known as Twitter). The move comes in response to Musk's apparent endorsement of an antisemitic post. According to a Walmart spokeswoman, the company has chosen to explore other platforms that can better reach its customers.

Joining Other Major Companies in Suspending Ads

Walmart is not alone in its decision to suspend advertising on X. Several other major companies, including Disney, Apple, IBM, and Warner Bros, have also pulled their ads from the platform following Musk's endorsement of the controversial post.

However, Joe Benarroch, X's head of business operations, clarified that the company had actually stopped advertising on X back in October, suggesting that Walmart's decision was not a recent one.

Musk's Response and X CEO's Support

Elon Musk responded to Walmart's announcement with a tweet, stating that he prefers HEB, possibly implying his preference for another retailer. Additionally, at the DealBook Summit, Musk expressed his anger towards big advertisers who have abandoned his platform, warning that their actions could potentially "kill" X.

X CEO Lina Yaccarino sent a memo to the company in support of Musk, asserting that their principles cannot be compromised and that they will not be distracted by critics who fail to understand their mission.

Musk's Regret and the Potential Financial Impact

Musk has since admitted that endorsing the antisemitic post was a mistake and one of the most foolish things he has done on the platform. However, the controversy surrounding his actions could cost the company up to $75 million in ad revenue by the end of 2023, according to The New York Times.

Investor Ross Gerber has also voiced his concerns about the impact of Musk's comments on Tesla's brand. He stated that he has never seen a CEO do "so many detrimental things" that harm a brand, and expressed his outrage at the damage caused by Musk's behavior.

Walmart's Response

Business Insider reached out to Walmart for comment, but the company has not yet responded as the request was made outside of normal working hours.

Source: Business Insider

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By: pthompson@insider.com (Polly Thompson)
Title: Walmart Joins List of Companies Suspending Advertising on Elon Musk’s X
Sourced From: www.businessinsider.com/walmart-joins-list-major-companies-leaving-elon-musk-x-2023-12
Published Date: Sat, 02 Dec 2023 15:53:42 +0000