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X, the social-media platform owned by Elon Musk, is reportedly pressuring advertising giant Interpublic Group to increase client spending, raising concerns about the future of its recently announced merger with Omnicom Group.
According to The Wall Street Journal, a lawyer from Interpublic received a call from an X lawyer in December, urging the company to push its clients to spend more on X or risk consequences. Interpublic leaders viewed the message as a veiled threat, implying that the $13 billion merger with Omnicom could face obstacles from the Trump administration due to Musk's influence in Washington.
X's chief executive, Linda Yaccarino, has echoed similar warnings in discussions with Interpublic executives. The pressure comes as X continues to grapple with the aftermath of an advertiser exodus following Musk’s $44 billion takeover of the platform in 2022, then known as Twitter.
Despite the tension, Interpublic recently signed a new annual agreement with X for potential client spending. An Interpublic spokesperson clarified that the company does not make spending commitments on behalf of clients, stating that all decisions rest with the clients themselves.
The situation unfolds against the backdrop of a probe by House Judiciary Committee Chairman Jim Jordan, who launched an investigation into the Interpublic-Omnicom merger shortly after its announcement, citing anticompetitive concerns. The probe also examines the companies' ties to an ad trade group previously investigated for allegedly withholding ad spending from social-media platforms and conservative media outlets, actions that, according to a July report, may have violated antitrust laws.
Complicating matters further, X filed a federal antitrust lawsuit in August against the World Federation of Advertisers and several major brands, including Mars and CVS Health, accusing them of orchestrating an illegal boycott of the platform. The trade group shut down an initiative aimed at protecting marketers from harmful content following the suit, asserting that X had misconstrued its efforts. During an interview at the New York Times’s DealBook Summit, Musk said, “If someone tries to blackmail me with advertising or money, they can go f— themselves.”
In January, X signalled its intent to expand the lawsuit by adding more advertisers, leaving many in the industry uneasy. On 1 February, about half a dozen new advertisers were added to the case.
These concerns were reportedly discussed in side conversations at CES in January, a major event attended by advertisers, agencies, and tech companies. Yaccarino and her team met with executives from major ad firms such as Omnicom Group, Dentsu, and WPP during the conference. She urged WPP to sign an annual upfront deal and pushed for higher spending commitments compared to previous years, according to The Wall Street Journal.
While some agencies let their deals with X lapse after 2022, negotiations are ongoing. WPP is still in talks with X, and Publicis Groupe, the world's largest ad company by net revenue, is close to signing a nonbinding annual ad pact.
The push for ad deals coincides with a wave of brands returning to X. Amazon has resumed ad spending, as have Apple and Verizon, according to sources.
In recent discussions, Yaccarino reportedly mentioned X's antitrust litigation, underscoring its intent to uncover which agencies and brands coordinated ad boycotts. Industry insiders suggest that the return of some advertisers stems not just from new brand safety tools, aimed at preventing ads from appearing near unsuitable content, but also from fears of legal and political consequences.