Elon Musk's X Sees 65% of Advertisers Return, Faces Continued Challenges

After a tumultuous period, X, the social media company acquired by Elon Musk for $44 billion in 2022, has seen a return of 65 percent of its advertisers to the platform since January. This information was disclosed in recent all-hands meetings by X's leadership, including Linda Yaccarino, who took over the company a year ago.

Revenue Shift Towards Smaller Companies

The meetings also revealed that smaller companies now make up the majority of X's revenue, marking a significant shift in its advertising business landscape.

Challenges and Uncertainties

Despite the return of advertisers, the company continues to face challenges in rebuilding its advertising business. The executives did not provide updated sales figures, and it was noted that the return of advertisers did not necessarily equate to a corresponding increase in revenue.

Elon Musk, facing a Tesla shareholder vote on his pay package worth over $45 billion, has drawn concern from some investors regarding his attention being divided between X and Tesla. However, it was later announced that shareholders had approved his compensation.

Changes Under Musk's Leadership

Since taking over X, Elon Musk has initiated significant changes, including a 75 percent staff reduction, restoration of hundreds of banned accounts, and a remade platform allowing most speech without consequences. Notably, in November, he controversially advised advertisers not to spend on X during an interview at The Times’s DealBook conference.