Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

X's CEO tells staff data will show efforts to fight hate, as advertisers flee

Published 11/20/2023, 12:41 PM
Updated 11/20/2023, 05:34 PM
© Reuters. FILE PHOTO: The logo for  social media platform X, following the rebranding of Twitter, is seen covering the old logo in this illustration taken, July 24, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
CMCSA
-
IBM
-

By Sheila Dang

(Reuters) -Social media company X CEO Linda Yaccarino told employees that "data will tell the real story" about its efforts to battle antisemitism, according to a note to employees, amid growing outrage over the issue.

X, formerly Twitter, lost several major advertisers including IBM (NYSE:IBM) and Comcast (NASDAQ:CMCSA), and owner Elon Musk was blasted by the White House after he agreed with a post on the platform Wednesday.

The post falsely claimed Jewish people were stoking hatred against white people. On Thursday, and media watchdog group Media Matters said it had found that ads for major brands had appeared next to posts that touted Nazism.

"While some advertisers may have temporarily paused investments because of a misleading and manipulated article, the data will tell the real story," Yaccarino said in the Sunday night note to employees seen by Reuters, adding that X has been clear about its efforts to fight antisemitism and discrimination.

Six major brands that said they have or have been reported to have paused ads - Apple (NASDAQ:AAPL), IBM, Sony (NYSE:SONY), Disney, Comcast and Paramount - collectively represented 7% of X's U.S. ad revenue so far this year, according to data from market intelligence firm Sensor Tower.

X did not immediately respond to a request for comment regarding Sensor Tower's data.

Over the weekend, Musk posted on X that his company would file a "thermonuclear" lawsuit against Media Matters for what he said was a "fraudulent attack" on the platform. An X representative confirmed that the company would sue the nonprofit organization, possibly as early as Monday.

In a response on Monday, Media Matters President Angelo Carusone, said, "Far from the free speech advocate he claims to be, Musk is a bully who threatens meritless lawsuits in an attempt to silence reporting that he even confirmed is accurate. Musk admitted the ads at issue ran alongside the pro-Nazi content we identified."

© Reuters. FILE PHOTO: The logo for  social media platform X, following the rebranding of Twitter, is seen covering the old logo in this illustration taken, July 24, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The controversy comes amid a surge in antisemitism in many countries, including the United States, since the Oct. 7 attack by Hamas on southern Israel and the subsequent bombardment and invasion of the Gaza Strip by the Israeli military.

After buying Twitter in October 2022 for $44 billion, Musk laid off thousands of employees, including many who worked to moderate content on the platform.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.