A battle between the CEOs of two corporate giants rages on. Tesla Inc TSLA CEO Elon Musk is once again calling out Walt Disney Company DIS CEO Bob Iger for suspending advertising on social media platform Twitter, now known as X.
Here's the latest in the tense battle.
What Happened: Disney was one of many companies that suspended or paused advertising on Musk’s X.
The decision came after Musk interacted with an antisemitic post that was then elevated in visibility on the platform.
Musk criticized Disney’s decision.
"Bob Eiger thinks it's cool to advertise next to child exploitation material. Real stand up guy," Musk tweeted.
The Tesla CEO was referring to a report about a recent lawsuit: The state of New Mexico is suing Meta Platforms META, alleging that sexually explicit content on Facebook and Instagram enabled interactions with sexual predators.
Musk responded to another Twitter user that “[Iger] should be fired immediately."
A Twitter user highlighted that Disney is still running ads for its Disneyland and Disney World theme parks on Facebook despite the civil suit and allegations. The post prompted a response from Musk saying it was crazy that a lawsuit has to stop the "crazy behavior."
"Walt Disney is turning in his grave over what Bob has done to his company," Musk also said, echoing a statement he made during a recent interview with Sandy Munro.
Related Link: Disney’s Solution To Hollywood Strike, Delayed Content: Bring Old Streaming Exclusive Movies To Theaters
Why It's Important: Musk recently apologized for interacting with the controversial antisemitic post on Twitter, but fought back against companies that have suspended advertising on the platform.
“I don’t want them to advertise,” Musk said, while speaking at the New York Times Dealbook Summit. “If someone is going to blackmail me with advertising or money, go f*** yourself. Go. F**k. Yourself. Is that clear?”
Musk went on to call out Iger, who spoke earlier at the same event: “Hey Bob, if you’re in the audience, that’s how I feel.”
The battle between Disney and Musk could see the media company lose streaming subscribers. As previously shared by Benzinga, "Cancel Disney Plus" and "Cancel Hulu" were trending on social media after Musk’s comments.
Musk predicted Disney could see a “meaningful decline” in the future.
As the fight between Musk and Iger escalates, it could become a distraction for Disney, Tesla and Twitter. Musk has also cautioned that lower advertising revenue could hurt the future health of Twitter. His latest comments may scare away more companies or prolong suspensions.
Iger is facing an activist battle and concerns over a succession plan have grown. The CEO was brought back to Disney in November 2022 after a short stint away. He notably led the company in the title role from 2015 to 2020.
Musk's comments also point out a stark contrast among advertisers that actively pulled spending on Twitter, but not from Meta despite the allegations.
Meta Platforms could see companies start to pull advertising given the recent allegations, which is something investors should be aware of and watch.
DIS Price Action: Disney shares trade at $92.99 versus a 52-week trading range of $78.73 to $118.18.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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