US technology giant Amazon has boosted its advertisement spending on social media giant X.
The move marked a turnaround from an earlier decision to distance itself from the platform owned by US tech billionaire Elon Musk over concerns about hate speech.
According to The Wall Street Journal (WSJ) on January 30, which spoke to people familiar with the situation, Amazon CEO Andy Jassy was involved in the decision.
Apple, which pulled all of its advertisement money from X, was reportedly also testing out new ads on X, according to WSJ.
That, it was reported, appeared to be part of a broader wave of businesses returning to the platform, making peace with X’s stance on free speech and a seeming rejection of censorship.
Musk’s close relationship with newly elected US President Donald Trump and the resulting political and social shift in the country might have played a role in the companies’ about-face, it was felt.
Amazon, Meta and Apple contributed to Trump’s inauguration fund.
Traditionally, many in Silicon Valley had supported Democratic candidates. Yet, as the previous Joe Biden administration pursued stricter regulations, some tech executives started to gravitate towards what they saw as more business friendly Republican figures such as Trump.
Meta, the parent company of social media giants including Instagram and Facebook, has said it planned to “restore free speech”. https://t.co/KDyVbGqKxk
— Brussels Signal (@brusselssignal) January 7, 2025
Some brands returning to X have been spending far less than before Musk purchased it for $44 billion in 2022, according to the WSJ.
Renewed injections of ad cash would strengthen X’s financial position at a crucial time. The investment banks that financed Musk’s acquisition are currently struggling to sell off the debt they hold, according to the WSJ.
The paper reported that they were now trying to offload senior debt at a 10-15 per cent discount. Improved company revenue would make this debt more attractive to potential buyers.
Most of the advertisers moved away from X after a report in autumn last year by the left-wing advocacy group Media Matters for America. The pressure group accused the platform of spreading anti-Semitic conspiracy theories and far-right content.
Musk filed a lawsuit against the group on November 20, which will go to trial on April 7 after a federal judge in Texas ruled against Media Matters and its request to dismiss the case.
Attorneys representing X claimed the Media Matters report was “intentionally deceptive” with “manipulated” data that financially damaged the company.
Later, Musk said in an interview that he would not let himself be “blackmailed” by advertisers.
“If somebody is going to try to blackmail me with advertising, blackmail me with money? Go f*ck yourself,” Musk said at The New York Times‘ DealBook Summit in November 2024.
The city of Paris has become the latest European municipality to abandon Elon Musk’s social media platform, saying it will close its X account on January 20. https://t.co/bzEn2YSoOZ
— Brussels Signal (@brusselssignal) January 17, 2025
