In a major blow to X, formerly known as Twitter, internal documents reveal that the social media giant could lose up to $75 million in advertising revenue by the year-end. The crisis stems from Elon Musk's endorsement of an antisemitic conspiracy theory, prompting dozens of major brands like Airbnb, Coca-Cola, and Microsoft to halt or consider pausing their advertising campaigns.

The Unraveling Situation
Internal documents from X's sales team highlight the extensive impact of advertising lapses, tracking more than 200 ad units from major companies like Amazon, Coca-Cola, and Microsoft, all either halting or contemplating pausing their ads on the platform. The figures indicate a more challenging position for X than previously known.

The Financial Fallout
X issued a statement acknowledging that $11 million in revenue was at risk, with the exact figure fluctuating as advertisers returned or increased spending. However, the documents reviewed by The New York Times suggest a more dire situation, with concerns spreading beyond the initial wave of companies that paused their campaigns.

Advertisers' Concerns
Since Elon Musk's acquisition of X last year, brands have been wary of advertising on the platform due to concerns about Musk's behavior and content moderation decisions. U.S. advertising on the platform has dropped nearly 60% this year. Linda Yaccarino, X's CEO, is leading efforts to woo back advertisers, but the documents indicate that these efforts have not been successful.

Brands Taking Action
The documents reveal that over 100 brands have fully paused their ads, while many others are deemed at risk. Major brands like Airbnb, Amazon, Coca-Cola, Microsoft, and Netflix have either halted or reduced their ad spending on X. The advertising freezes come during the crucial holiday season, impacting X's traditionally strong quarter.

Musk's Controversial Statement
The crisis escalated after Musk's endorsement of an antisemitic conspiracy theory on X, leading to widespread condemnation and a subsequent exodus of advertisers. The situation has raised questions about Musk's influence on the platform and X's ability to retain advertisers.

X responded to the situation by stating that the figures viewed by The Times were either outdated or part of an internal exercise to evaluate total risk. The company emphasized ongoing efforts to attract advertisers and address concerns, but the documents suggest that these efforts have fallen short.

X faces a significant challenge as major advertisers withdraw in response to Musk's controversial statements. The financial impact could be substantial, potentially jeopardizing the platform's stability and reputation in the advertising industry. The unfolding situation underscores the delicate balance between free speech, content moderation, and advertiser confidence on social media platforms.