GM, Pfizer, Audi Pull Ads From Twitter After Musk Sale—Here Are The Other Companies Rethinking Their Ties

Topline

Twitter owner Elon Musk’s plan to right the social media company’s financial ship while also loosening its content moderation rules could face early headwinds, with several large companies taking a pause on Twitter ads until they have a fuller view of how the platform will look under his leadership.

Key Facts

Tangent

Musk recently told investors he wants to triple the number of daily users who see ads on Twitter, according to the Washington Post.

What To Watch For

Musk is reportedly planning to fire 50% of Twitter’s roughly 7,500-person staff starting Friday, prompting concerns the cuts could impact content moderation and security on the website. He’s already fired several top executives, including some who worked with advertisers.

Contra

Possibly seeking to ease concerns about the platform’s direction, Musk tweeted an open letter to advertisers last week promising Twitter would not become a “free-for-all hellscape, where anything can be said with no consequences” under his leadership. He also said each user would be able to “choose your desired experience according to your preferences.”

Key Background

Musk claimed he wanted to buy Twitter for the good of humanity since he believes it is a “digital town square, where a wide range of beliefs can be debated in a healthy manner.” He suggested before purchasing the company he would cut down moderation sensitivity to allow all speech protected by law, and would allow polarizing banned figures back onto the platform, including former President Donald Trump. A spike in hate speech was reported immediately after Musk took over as Twitter owner late last week as some users appeared intent on testing the new owner’s boundaries, with the Network Contagion Research Institiute finding use of the n-word rose more than 500% over the course of 12 hours, while reports of antisemitic, misogynistic and anti-LGBTQ+ language have been rampant. Banned accounts, including Trump’s, will remain in limbo for at least the next few weeks, Musk told civil rights leaders Wednesday. The billionaire said Twitter will create a “content moderation council” that will determine a “clear process” for allowing banned users back on the platform. The council “will certainly include the civil rights community and groups who face hate-fueled violence,” Musk said.

Surprising Fact

Musk has also pointed to an enhanced Twitter Blue subscription service as a way of increasing revenue, but his proposal to charge $8 a month for users to acquire or keep a verified check mark has been widely panned. A Forbes analysis found some 10.4 million users would have to buy into the subscription service to cover the company’s debts—about 25 times more than the 400,000 accounts that have been verified for free.

Further Reading

Elon Musk Has Twitter Bills To Pay, But Charging For A Blue Checkmark Won’t Be Enough (Forbes)

General Mills, Audi and Pfizer Join Growing List of Companies Pausing Twitter Ads (Wall Street Journal)

GM, Ford Say They Aren’t Running Twitter Ads As They Assess Changes Under Elon Musk (Forbes)

Musk Plans To Layoff 50% Of Twitter’s Workforce Ahead Of Verification Fee Roll Out Next Week, Reports Say (Forbes)

Musk Says Twitter ‘Cannot Become A Free-For-All Hellscape’ Ahead Of Purchase (Forbes)

Trump’s Return, Potential Layoffs: What To Watch For As Musk U-Turns (Again) To Buy Twitter (Forbes)

Twitter Will Sell Coveted Blue Checkmark For $8 A Month, Musk Says—But Benefits Still Unclear (Forbes)