Elon Musk’s social media platform X, formerly known as Twitter, has reached a preliminary agreement to settle its legal dispute with Twitch, a live streaming service owned by Amazon.
The deal relates to allegations that Twitch and several other companies conspired to withhold advertising from X, causing the platform to lose significant revenue.
In a court filing on Monday, X informed a federal judge in Texas that it had signed a “memorandum of understanding” to dismiss its lawsuit against Twitch, contingent on the subsidiary meeting certain undisclosed conditions by the end of 2025.
X’s antitrust lawsuit
X initially filed the lawsuit in November, accusing Twitch and nearly a dozen other companies of violating antitrust laws by coordinating a boycott.
The filing claimed the companies acted in concert with the World Federation of Advertisers (WFA) to intentionally divert billions of dollars in ad spending away from X.
The lawsuit is part of a broader legal effort by X to challenge what it alleges is a coordinated campaign by major advertisers and industry bodies to undermine the platform’s financial performance.
Twitch had not filed a legal response before the settlement announcement.
The agreement with Twitch follows a similar move last year involving Unilever.
In October, X voluntarily dismissed the consumer goods giant from the lawsuit after the two parties reached a settlement.
Unilever said at the time that X had committed to “meeting our responsibility standards to ensure the safety and performance of our brands on the platform.”
Ongoing cases
Since Musk acquired the platform in October 2022, X has struggled with declining ad revenues.
Many advertisers reduced or paused spending amid concerns that content moderation had weakened under new leadership, leading to a higher risk of ads appearing alongside controversial or harmful content.
Other companies named in the ongoing lawsuit include CVS, Pinterest, and Colgate-Palmolive.
The litigation highlights the continued tension between X and the advertising industry, as the platform works to rebuild advertiser confidence and revenue streams amid ongoing scrutiny of its content policies and moderation practices.
Elon Musk sells X
Last month, Musk announced that his artificial intelligence firm, xAI, had acquired social media platform X in a $33 billion all-stock transaction.
The deal includes $12 billion in debt, effectively raising X’s valuation to $45 billion.
Explaining the rationale behind the merger, Musk stated on X:
xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.”
Musk said that since its inception two years ago, xAI has emerged as one of the world’s leading AI labs, advancing at “unprecedented speed and scale” in building both models and data centers.
He also noted that X, which now serves over 600 million active users seeking real-time information, has “been transformed into one of the most efficient companies in the world,” positioning it for future growth.
Musk said the deal values xAI at $80 billion and X at $33 billion.
The post Elon Musk’s X nears settlement with Amazon’s Twitch in ad boycott lawsuit appeared first on Invezz