Elon Musk's X Reaches Agreement With Unilever, Drops It From Ad Boycott Lawsuit: 'First Part Of The Ecosystem-Wide Solution'
Elon Musk’s social media platform, X, formerly Twitter, has dropped Unilever Plc. (NYSE:UL) from a lawsuit that accused the company of conspiring to boycott the platform, leading to a loss in revenue.
What Happened: On Friday, X dropped its claims against Unilever in the antitrust lawsuit filed in a federal court in Wichita Falls, Texas, in August.
X confirmed the agreement with Unilever and expressed satisfaction to “continue our partnership with them on the platform.”
However, the social media platform did not disclose the terms of the agreement but said that it is the “first part of the ecosystem-wide solution and we look forward to more resolution across the industry.”
Unilever stated that it had “reached an agreement with X, which has committed to meeting our responsibility standards to ensure the safety and performance of our brands on the platform,” reported Reuters.
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Why It Matters: The lawsuit accused the World Federation of Advertisers and group members, including Unilever, Mars, and CVS Health, of conspiring to withhold “billions of dollars in advertising revenue” from X.
Following Musk’s acquisition of X in October 2022, the platform experienced a slump in ad revenues for several months. Just last month, the platform faced a major advertiser exodus amid concerns over the platform’s content under Musk’s management.
Previously, billionaire entrepreneur Mark Cuban voiced concerns over advertisers not wanting to be associated with explicit content on X.
“When you talk about free speech, free speech applies to advertisers as well. They get to associate with whoever they want to, no matter what. So there are repercussions,” he stated at the time.
Musk’s platform’s value has also significantly dropped since, with Fidelity valuing the social media network below $10 billion now.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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