IBM and Lionsgate Suspend Ads on X/Twitter Due to Pro-Nazi Posts

IBM and Lionsgate have both decided to suspend their advertising on X/Twitter after discovering that their ads appeared next to pro-Nazi posts. This decision came in response to Elon Musk's endorsement of an antisemitic conspiracy theory on X/Twitter and his controversial comments about white people. The suspensions of ads by IBM and Lionsgate add to the growing concerns about X/Twitter's decline in value and safety issues since Musk took over the platform.

X/Twitter, under Musk's ownership, is already facing an investigation by the Federal Trade Commission (FTC) following a complaint filed by Check My Ads, an organization that aims to demonetize conservatives. Check My Ads alleges that X/Twitter engages in deceptive advertising practices and lacks transparency regarding paid advertising on the platform. The organization is urging the FTC to fine X/Twitter for violations of a 2022 administrative order related to privacy and deceptive advertising. This investigation, along with the suspensions of ads by IBM and Lionsgate, is likely to complicate X/Twitter's efforts to retain advertising agencies and major brands.

The suspensions of ads by IBM and Lionsgate have raised concerns among Tesla investors and clients, with some considering selling their shares and cars. X/Twitter's CEO, Linda Yaccarino, has emphasized the platform's efforts to combat antisemitism and discrimination. However, the incidents have further damaged X/Twitter's reputation and are expected to impact the platform's ability to attract advertisers and retain users.

In addition to the FTC investigation and the suspensions of ads by IBM and Lionsgate, X/Twitter is also facing backlash from organizations concerned about the platform's moderation capabilities. The Trevor Project, a suicide prevention organization for LGBTQ+ youth, has announced its departure from X/Twitter due to concerns about increasing hate and vitriol targeting the LGBTQ+ community. The organization cited the lack of sufficient moderation capabilities on the platform as a reason for their decision to leave. The Trevor Project's departure highlights the ongoing issue of hateful speech on X/Twitter, which has been a cause for concern since Musk emphasized his desire for 'free speech' on the platform. X/Twitter has been facing user backlash and a decline in users since Musk acquired the platform, and the company has been trying to retain advertisers despite concerns about ads appearing alongside hateful content or misinformation.

The combination of these recent developments, including the FTC investigation, the suspensions of ads by IBM and Lionsgate, and the departure of The Trevor Project, paints a troubling picture for X/Twitter. The platform's decline in value, safety issues, and controversies surrounding its moderation capabilities are raising serious questions about its future prospects under Musk's ownership.