Platform X, previously known as Twitter, disclosed a significant surge in user registrations in December, surpassing 10 million new sign-ups. CEO Linda Yaccarino announced this remarkable uptick, marking a notable milestone for the platform. Despite its historical reluctance to divulge user metrics, this exceptional growth contrasts with potential financial setbacks.
Financial Challenges Amidst Surging Users
The platform, acquired by Elon Musk for $44 billion and currently valued at $19 billion, typically maintains secrecy regarding its user base. However, Yaccarino broke tradition by revealing the substantial user expansion in December, although specifics comparing this to past months’ registrations remained undisclosed. Meanwhile, Musk previously declared a user base of 540 million monthly active users in July, without recent updates from X representatives.
Advertiser Suspicions and Campaign Suspensions
Amidst the user surge, Platform X faces challenges as major corporations, including Apple, Disney, Warner Bros. Discovery, Comcast, Lions Gate Entertainment, Paramount Global, and IBM, opt to temporarily halt advertising campaigns. This decision follows a series of controversial statements made by Musk, exacerbating concerns regarding the platform’s financial stability.
Tensions with Advertisers Escalate
Moreover, a Media Matters report highlighted major brands’ advertisements appearing alongside contentious content on Platform X, prompting X to file a lawsuit for alleged defamation against Media Matters in late November, notes NIXSolutions. These developments indicate a growing rift between the platform and advertisers, intensifying its economic uncertainties.