Platform X CEO Linda Yaccarino is facing increasing pressure from advertisers to resign, according to people familiar with the matter. Several major brands have previously suspended advertising on the platform due to concerns about X's owner, Elon Musk, and his anti-Semitic comments. This past weekend, executives and friends of Yacarino’s in the advertising industry privately urged her to resign to salvage her reputation, according to three people familiar with the matter.
However, two of the people familiar with the situation said Yacarino refused to leave and told those who called her that she believed in X's mission and employees.
Musk caused huge controversy last Wednesday when he posted on the X platform in support of a so-called "anti-Semitic" post, saying that the post was telling the "truth."
Since then, the non-profit organization MediaMatters issued a report stating that advertisements from some major companies were placed near some pro-Nazi content on the X platform.
The report has prompted brands such as IBM, Apple, Disney, Comcast and Warner Bros. to pause advertising on the platform because they fear their campaigns will appear alongside more objectionable content. They and other companies also tried to distance themselves from Musk following his comments.
"I did advise Linda via text message to leave, (saying) staying would only damage her reputation," said Lou Paskalis, CEO of marketing consultancy AJLAdvisory and a former Bank of America media executive. Brands could face shareholder complaints and potential customer boycotts if they continued to advertise on the platform, he said.
He added: "I question the judgment of any brand - any brand - if they still advertise on X. [Musk] has to find a new revenue model because he has killed advertising on the platform, period."
Two people familiar with the matter said lobbying for Yaccarino's resignation began while attending his daughter's wedding on Saturday. One of the participants insisted they had her best interests at heart, calling the situation painful.
During Yacarino's tenure as CEO, she maintained that X's safety record was improving. She posted last week: "X on us fighting anti-Semitism and discrimination." Musk posted on Sunday: "Hundreds of false media reports have been made over the past week claiming that I am anti-Semitic. Nothing could be further from the truth. I wish nothing but the best for humanity and a prosperous and exciting future for all. "
The day before, Musk also vowed to file a "thermonuclear lawsuit" against MediaMatters because the organization's report was a "fraudulent attack" on X.
MediaMatters CEO Angelo Carusone responded: "If he sued us, we would win."