WSJ Tech News Briefing: Elon Musk’s X to Brands: Advertise With Us or We’ll Sue
Release Date: June 13, 2025

Introduction

In this episode of the WSJ Tech News Briefing, hosted by Victoria Craig, the spotlight is on Elon Musk's aggressive campaign to retain and attract advertisers to his social media platform, X (formerly known as Twitter). The episode delves into the strategies employed by X to strong-arm brands into continuing their advertising investments, the legal ramifications of these tactics, and the broader implications for the advertising industry.

Elon Musk’s Pressure Campaign on Advertisers

Victoria Craig opens the discussion by highlighting the recent pressure campaign initiated by Elon Musk aimed at compelling advertisers to increase their spending on X. She notes the involvement of major companies such as Verizon, Amazon, Unilever, and Pinterest, which received threatening messages demanding continued ad investment or face legal action.

“Give us your ad business or we’ll sue you.”
— Victoria Craig (00:19)

Exodus of Advertisers and Declining Revenue

Suzanne Vernica, WSJ's advertising editor, provides an in-depth analysis of the situation. Following Musk's acquisition of Twitter in 2022, the platform experienced a significant exodus of advertisers, leading to a 50% drop in revenue—a critical blow since advertising constitutes the lion's share of X's income.

“After Elon Musk took over Twitter at the time in 2022, there was a massive exodus of clients... revenue down like 50%.”
— Suzanne Vernica (01:35)

Tactics Employed by X to Retain Advertisers

Suzanne discusses the various tactics X has employed over the past two years to persuade advertisers to return, including legal threats and leveraging relationships with advertising vendors.

“They’ve ramped up the pressure on Madison Avenue and advertisers... used threats demanding that they return to the platform or they end up being sued.”
— Suzanne Vernica (03:12)

Despite these efforts, success has been limited, prompting X to adopt increasingly aggressive measures.

Legal Battle: Allegations of Collusion

A significant part of the episode focuses on X's lawsuit against advertisers and a trade group, accusing them of colluding to illegally boycott the platform, thereby violating antitrust laws.

“...they were really motivated by a desire not to be associated with X and what was happening on that platform, then that's unlikely to be an antitrust violation.”
— Suzanne Vernica (04:49)

Legal experts interviewed by Suzanne express skepticism about the strength of X's claims, noting that proving such collusion in court would be challenging.

Current Status of the Lawsuit

The lawsuit is ongoing, with X recently adding seven new advertisers to the complaint. The case has not yet proceeded to court, and its outcome remains uncertain.

“It's still in the process, and we're a ways off from where this actually gets to court.”
— Suzanne Vernica (04:39)

Advertisers' Response to Content Moderation Concerns

Another critical issue driving advertiser withdrawal is the concern over content moderation and the prevalence of unsafe content on X since Musk's takeover. X has attempted to address these concerns by introducing new ad technology tools that allow advertisers to block certain keywords and control the placement of their ads.

“They've instituted a bunch of new ad technology tools... your ads, you know, don't have to appear near content that has those words.”
— Suzanne Vernica (05:05)

However, despite these measures, advertisers remain hesitant. Suzanne compares the current situation to a similar boycott faced by Facebook, where advertisers eventually returned after realizing the financial impact of their absence.

“It's even tougher now because we're facing economic headwinds... clients aren't just spending money on every platform.”
— Suzanne Vernica (06:19)

Economic Context and Future Prospects

The struggle to bring advertisers back is compounded by broader economic challenges, making advertisers more cautious about where they allocate their budgets. This environment makes X's task of reclaiming lost ad revenue even more daunting.

Additional Segment: Email Security Tips

In a separate segment after the main discussion on X and advertising, Heidi Mitchell, a WSJ writer, provides valuable insights into email security, particularly concerning unsubscribe links in emails.

Key Points:

• Risk of Malicious Links: One in every 644 clicks on unsubscribe links can lead to malicious websites.

  “One in every 644 clicks on them leads to a potentially malicious website.”
  — Victoria Craig (07:18)

• Distinguishing Safe from Malicious Links: Legitimate companies require an unsubscribe option, but unsolicited emails from unknown sources may contain harmful links intended to verify active emails or steal credentials.

  “If you don't like your inbox being flooded, you can send that kind of email to spam filter for it...”
  — Heidi Mitchell (08:52)

• Best Practices for Consumers:

  • Ignore suspicious unsubscribe links.
  • Use separate email addresses for subscriptions.
  • Leverage tools like Apple’s Hide My Email or browser extensions to manage and protect your email identity.

Conclusion

The episode offers a comprehensive look into Elon Musk's strategies to stabilize X's advertising revenue amid significant advertiser departures and declining platform revenue. While X employs aggressive tactics and legal threats to retain and attract advertisers, the challenges remain substantial due to content moderation concerns and economic uncertainties. Additionally, the episode provides practical advice on email security, underscoring the broader theme of trust and safety in the digital landscape.

Notable Quotes:

• “Give us your ad business or we’ll sue you.”
  — Victoria Craig (00:19)

• “After Elon Musk took over Twitter... revenue down like 50%.”
  — Suzanne Vernica (01:35)

• “They’ve ramped up the pressure on Madison Avenue and advertisers...”
  — Suzanne Vernica (03:12)

• “If you don’t like your inbox being flooded, you can send that kind of email to spam filter for it.”
  — Heidi Mitchell (08:52)

Attributions:

• Victoria Craig – Host, The Wall Street Journal
• Suzanne Vernica – WSJ Advertising Editor
• Heidi Mitchell – Intern Writer, WSJ

This detailed summary encapsulates the key discussions, insights, and conclusions from the episode, providing a comprehensive overview for listeners and those who have not tuned in.