The Wall Street Journal reports that Elon Musk's X is shifting its strategy to reclaim major advertising clients through legal threats rather than traditional outreach. Following a 43% decline in ad revenue, X has pressured several companies, such as Verizon and Ralph Lauren, into increasing their advertising spend. Notably, companies that refused to comply, including Pinterest and LEGO, were met with lawsuits. X's aggressive approach emphasizes a new tactic for collecting ad revenue and highlights the precarious relationship between the platform and advertisers.
Elon Musk's X is pressuring advertisers with legal threats to reverse a 43% ad revenue drop since the $44 billion acquisition.
Advertisers like Verizon and Ralph Lauren returned to X under threats of antitrust lawsuits, indicating a shift from traditional advertising outreach.
Musk's strategy involves lawsuits and ultimatums rather than discounts, highlighting a new direction in securing ad funds amidst declining revenue.
Companies including Pinterest and LEGO faced lawsuits for refusing to meet X's advertising demands, escalating tensions in the advertising landscape.
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