Benzinga - by Shanthi Rexaline, Benzinga Editor.
Tesla CEO Elon Musk, recently criticized for endorsing anti-Semitic comments and lashing out at advertisers choosing to pull out of advertising on his social media platform, found support from fund manager Bill Ackman.
What Happened: Ackman, expressing his views on social media platform X, owned by Musk, defended the billionaire entrepreneur’s commitment to free speech and praised his recent interview at the New York Times DealBook Summit.
“Musk is a free speech absolutist which I respect,” Ackman wrote.
Ackman said his firm, which invested in Twitter’s privatization via The Pershing Square (OTC:PSHZF) Foundation, intends to maintain its interest in X and support companies advertising on the platform.
“Whether we make a profit on our investment is not important to us as we never intend to sell our interest.”
In the interview, Musk criticized advertisers who abandoned the platform over the anti-Semitic content controversy, asserting that he and X were being treated unfairly compared to other social media platforms like TikTok, Instagram, and Facebook.
Ackman argued that X is targeted due to its perceived competition with other media organizations and because articles mentioning Musk, especially amid controversies, attract more clicks. He said that even Walt Disney Co (NYSE:DIS) suspended ads on X under media pressure, despite its heavy investment in Chinese-owned social media platform TikTok.
“If Bob Iger would carefully examine the facts, he would likely continue to advertise on X, but Disney caves to public pressure rather than do the right thing,” Ackman said. “I am sure Nelson Peltz can fix this when he joins the Disney board.”
Addressing Musk’s response to the anti-Semitic post, Ackman, who is Jewish, stated that Musk did not exhibit any anti-Semitic intent. He supported Musk’s clarification during the interview that Jews often support oppressed groups due to their history.
“And he [Musk] is correct in saying that Jews should rethink support for organizations that seek their elimination,” he added.
Ackman expressed gratitude for X’s insulation from external influence. ” “Earth is fortunate that @X is owned by an individual that is largely insulated from financial and other influence,” he said.
However, he suggested that a “carefully governed trust” could be a more suitable long-term owner.
While Musk thanked Ackman for his support, X is expected to incur losses of $75 million in advertising revenue by year-end due to the suspension of ads by some advertisers, according to a New York Times report.
Price Action: Shares of Pershing Square Holdings ended Thursday’s session down 1.55% to $39.09, according to data from Benzinga Pro.
Read Next: Tesla Bull Gary Black Advises Elon Musk To Sell X To ‘Another Media Entity’ Instead Of Flipping Advertisers Off
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