Musk’s X reaches deal to drop Twitch from lawsuit over ad spending

Mike Scarcella

Tue, Apr 8, 2025, 6:53 AM 2 min read

By Mike Scarcella

(Reuters) - Elon Musk’s X has reached an statement to resoluteness claims that unrecorded streaming work Twitch conspired with different companies and an advertizing manufacture radical to boycott the societal media platform, causing it to suffer advertisement revenue.

In a tribunal filing connected Monday, X told a national justice successful Texas that it signed a "memorandum of understanding" to driblet its lawsuit against Twitch if the Amazon.com subsidiary meets definite unspecified conditions by the extremity of the year.

X sued Twitch successful November arsenic portion of a larger suit alleging astir a twelve companies violated antitrust instrumentality by withdrawing advertizing connected the site. Twitch had not yet responded to the lawsuit.

Amazon, Twitch and X did not instantly respond to requests for comment.

The woody was astatine slightest the 2nd by a suspect successful the lawsuit, aft X dismissed user goods elephantine Unilever from the lawsuit successful October.

London-based Unilever said successful a connection past that X arsenic portion of the statement "committed to gathering our work standards to guarantee the information and show of our brands connected the platform."

X’s suit accused the World Federation of Advertisers and immoderate of its firm members of conspiring to withhold billions of dollars successful advertizing gross from X, antecedently known arsenic Twitter.

Advertising expenditure connected X slumped for months aft Musk bought the level successful October 2022.

Some advertisers had been wary of buying ads connected X pursuing Musk's acquisition amid concerns their brands would look adjacent to harmful content, specified arsenic racist oregon mendacious posts, that nether anterior absorption mightiness person been removed.

Other defendants remaining successful the suit see CVS, Pinterest and Colgate-Palmolive. They did not instantly respond to requests for comment.

(Reporting by Mike Scarcella; Editing by David Bario and Bernadette Baum)