General Motors announced late Friday it is suspending its paid advertising on Twitter, shortly after Elon Musk, the co-founder and CEO of Tesla, took control of the social media platform.
It was unclear how long the move would last or what it would cost Twitter, but in a statement to the Free Press, the automaker suggested it is still in conversations with Twitter — which is making what GM called significant changes — to “understand the direction of the platform under their new ownership.”
GM said its decision was consistent with its “normal course of business” to “temporarily pause our paid advertising.” However, the automaker added, it is not abandoning Twitter entirely, as its “customer care interactions on Twitter will continue.”
Musk’s takeover of Twitter put GM — and other automakers that use the platform — in the position of being a consumer of its advertising services and competitor, especially as GM seeks to build and sell more electric vehicles, Austin-based Tesla’s focus. Tesla dominates the electric car market in the United States.
By temporarily suspending advertising, GM can wait and see not just what Twitter will do, but also whether other advertisers will follow its lead.
In recent years, large corporations like GM have sought to burnish an image of being socially responsible, promoting causes and organizations they deem beneficial to society but also distancing themselves from efforts and entities that are controversial.
In the meantime, the Associated Press reported Lou Paskalis, former head of media for Bank of America, said Twitter’s most loyal advertisers, many Fortune 100 companies, believe in the platform and probably won’t leave unless “some really untoward things” happen.
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Musk, a transportation billionaire and one of the wealthiest men in the world, took control of Twitter on Thursday in a deal originally valued at $44 billion after months of business wrangling, and ousted the CEO, chief financial officer and the company’s top lawyer.
The move was not a surprise, given Musk’s criticism and statements on his plans for the company. He also tweeted the “the bird has been freed,” an allusion to Twitter’s logo. In the past, Musk has been critical of Twitter’s ad-based revenue model.
Musk said he aims to increase Twitter’s subscriber base and revenue and wants to promote free speech by cutting back on moderating content, and hinted Twitter might allow banned users, such as former President Donald Trump, to return.
However, he also has sought to “soothe leery Twitter advertisers,” the AP reported, by saying that he is buying the platform to help humanity and doesn’t want it to become a “free-for-all hellscape,” and plans to form a “content moderation council.”
In an uncharacteristically long tweet, Musk also posted his reasoning for why he purchased Twitter and what he thinks about advertising, noting that “there has been much speculation.”
“The reason I acquired Twitter is because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence.” he added. “There is currently great danger that social media will splinter into far right and far left wing echo chambers that generate more hate and divide our society.”
In the post, Musk also criticized strategies employed by news organizations, saying the “relentless pursuit of clicks” has fueled and “catered to those polarized extremes, as they believe that is what brings in the money, but, in doing so, the opportunity for dialogue is lost.”
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.