As Elon Musk’s support for Donald Trump continues to make waves, it is poised to breathe new life into X’s struggling business. Media executives have noted a potential shift as some brands consider returning to the platform in hopes of currying favor with the incoming administration.
Here are some key points to consider:
- X’s revenues have taken a nosedive since Musk’s acquisition two years ago, with current valuations estimated to be significantly lower than the initial $44 billion buyout. Brands have raised concerns over moderation issues, prompting giants like Disney, IBM, and Apple to abandon the platform.
- Despite these challenges, some marketers see an opportunity to reallocate their spending back to X as a form of “political leverage.” They believe that engaging with Musk on the platform could pave the way for future government contracts and put them in the good graces of influential figures.
- Musk’s backing of Trump’s campaign and substantial political contributions have sparked optimism about a revival for X’s business. He anticipates a relaxation of the boycott on the platform, particularly if Trump secures another term. Musk’s close ties to Trump have also fueled speculation about a potential merger with Truth Social, the president-elect’s own online platform.
- While X witnessed a surge in traffic post-election, it also experienced a significant number of user exits. Musk’s relationship with Trump has polarized opinions on the platform, with some viewing it as a vital space for conservative discourse while others steer clear due to its contentious nature.
In conclusion, the future of X remains uncertain as it navigates challenges both internally and externally. Brands are cautiously assessing their next steps, weighing the benefits of engaging with Musk and potential political gains against the risks associated with the platform’s controversial environment. As Musk continues to cement his influence, only time will tell whether X can rise from its current setbacks or fade into obscurity.
