Elon Musk’s X Uses Lawsuits to Pressure Advertisers into Returning

Elon Musk and X CEO Linda Yaccarino have pursued an aggressive legal strategy to pressure advertisers into returning to the platform, formerly known as Twitter, amid a sharp decline in ad revenue following Musk's 2022 takeover. According to multiple reports, X threatened to sue companies that refused to resume or increase their ad spending, with Verizon, Ralph Lauren, and others rejoining the platform after receiving legal threats. X filed a lawsuit against the World Federation of Advertisers and major brands, accusing them of orchestrating an illegal ad boycott, leading to the disbandment of the Global Alliance for Responsible Media. Some companies, including Pinterest, Lego, and Amazon’s Twitch, declined to meet X’s demands and were named in the lawsuit, while others like Unilever were removed after striking new ad agreements. The campaign marks a shift from traditional outreach to litigation and ultimatums, reflecting Musk and Yaccarino’s desperation to reverse a 43% drop in ad revenue since the acquisition. This tactic has sparked concern among marketers about the intimidation and legal risks involved in advertising on the platform.