Elon Musk’s social media platform, X, has reached a deal to drop its lawsuit against the live streaming service Twitch, resolving claims that Twitch participated in a boycott that led to a loss of ad revenue. In a filing submitted Monday to a federal court in Texas, X confirmed it had signed a “memorandum of understanding” with Twitch.
The agreement stipulates that X will drop the lawsuit if Twitch meets certain conditions by the end of this year.
The lawsuit, filed by X in November, accused Twitch and several other companies of conspiring with the World Federation of Advertisers to withhold ad spending from X, which caused significant financial losses. Twitch had yet to respond to the legal action.
This agreement marks the second such settlement in X’s ongoing case. In October, X dropped consumer goods company Unilever from the lawsuit after reaching a similar deal. Unilever confirmed that as part of the resolution, X agreed to adhere to certain safety and performance standards for ads on its platform.
X’s lawsuit originally accused multiple companies, including Amazon’s Twitch, of collectively withdrawing billions of dollars in ad revenue after Musk’s purchase of the platform in October 2022. The drop in ad spending was attributed to concerns among advertisers about harmful content appearing alongside their ads, which was less likely to be removed under Musk’s leadership.
Other companies still involved in the lawsuit include CVS, Pinterest, and Colgate-Palmolive. None of these companies, including Amazon and Twitch, have provided immediate comment on the case.
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