CEO X was wrong to ‘play with the tiger’ Elon Musk

Linda Yaccarino, former CEO of social networking platform X, known as Elon Musk’s “assistant”, has had a turbulent partnership with the world’s richest billionaire.

After two tumultuous years, Linda Yaccarino’s tenure as CEO of Elon Musk’s social media platform X has come to an end. Her abrupt departure has once again raised questions about the ability to run a business under the control of the unpredictable tech billionaire.

Ms. Yaccarino was brought to X to revive its advertising business, which had been on the decline since Elon Musk took over. However, that arduous journey ended when she resigned, shortly after Musk decided to merge X with xAI, his artificial intelligence venture.

“The Tiger Rider”

Ms. Yaccarino is expected to mend a rift with advertisers, who have turned their backs on X over concerns about Elon Musk’s unpredictable management style.

During her tenure, she successfully pushed the platform’s video features hard, signed deals with major content creators and sports leagues, and developed X Money – a potential e-wallet service.

However, her efforts have been repeatedly thwarted by Elon Musk’s unilateral decisions and inconsistent vision. Industry experts say Yaccarino has been given a seemingly “impossible” task.

Ms. Yaccarino struggled to find common ground with Mr. Musk, who often made unilateral decisions without consulting her, even in the advertising business, the core area she was hired to lead.

Portrait of Linda Yaccarino, Photo: Hipertextual.

“She tried to ride the tiger but was thrown off,” an unnamed advertising executive told the Financial Times.

The conflict between her and Elon Musk has been growing due to differences in X’s strategic direction. The billionaire is said to feel that Ms. Yaccarino is not transparent enough in her relationship with advertisers, and wants the company to quickly stabilize its finances.

To address this, Mr. Musk brought in Steve Davis, a longtime associate, and then Mahmoud Reza Banki as CFO. Notably, Mr. Banki, who reported directly to Elon Musk, said he often clashed with Ms. Yaccarino over spending decisions.

A major blow to the relationship between the two was an unsuccessful deal with former CNN host Don Lemon. Musk unilaterally canceled the deal after a controversial interview.

The immense pressure of work took its toll on her. Colleagues said she sometimes broke down in tears in the office. But they also praised her resilience: “She lasted two years in a job where most people would have collapsed in two weeks.”

Effort

Despite internal struggles, Yaccarino has managed to bring some advertisers back to X. After ad revenue plummeted by about 50% following the Elon Musk deal, Yaccarino has adopted a drastic strategy: suing trade associations and major corporations like Shell and Pinterest for “illegal boycotts” of the platform. Although controversial, this tough tactic has had some effect.

According to market research group Sensor Tower , major brands such as Temu, Amazon, Apple, Google, Verizon, and Dell have significantly increased spending on the platform.

Research firm Emarketer also forecasts X’s revenue to reach $2.3 billion this year, up from $1.9 billion last year. However, that is still significantly lower than the $4.1 billion it achieved in 2022, when Elon Musk first took over the company.

However, many advertisers have returned to X reluctantly, according to reports. Brands are not returning “voluntarily or happily,” said Brian Wieser of consultancy Madison & Wall Street, but to avoid legal challenges from the platform.

In addition to legal pressure, some experts have also criticized the ineffectiveness of advertising on X. They believe that X does not bring enough return on investment (ROI) as expected.

“Many clients are dropping ads on X not because of the content, but because the platform doesn’t work,” commented an anonymous advertising executive.

The inevitable end

Ms. Yaccarino’s position has become increasingly difficult to maintain, especially as Elon Musk, after a long period of focusing on politics, has shifted back to his core businesses.

The merger of X with xAI is seen as a new chapter for the company, but also a defining factor in Ms. Yaccarino’s role.

“Now that Musk is back in business, he will never put her in charge of an AI company,” a source close to the FT told the FT , suggesting that Yaccarino is no longer part of Musk’s long-term development plans.

Billionaire Elon Musk and Linda Yaccarino appeared at the same event in 2023. Photo: Possible Event/Flickr.

In the weeks leading up to Ms. Yaccarino’s departure, Mr. Musk made a series of unilateral decisions regarding advertising, including banning hashtags in ads and changing the pricing model, moves that further undermined Ms. Yaccarino’s control and role.

Yaccarino also appears to believe Musk isn’t focused enough on platform safety—a top priority for her. Her departure coincides with the spread of anti-Semitic messages by xAI’s Grok chatbot.

For now, Ms. Yaccarino’s future remains a question mark. Her public support for both President Donald Trump and billionaire Elon Musk could hurt her chances of taking on future CEO roles at other media or entertainment companies.

Some analysts speculate that her next move could be to take on a role in government or become a free speech advocate — a cause she has publicly championed throughout her time at X.