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brazil bans x

according to bloomberg, brazil's ban on elon musk's social media app x has little impact on the company's business. x has long relied on brazil for user growth and cultural influence, but its revenue is not so dependent on the country.

although brazil is one of x’s largest markets in terms of users, the country has historically accounted for only a small portion of x’s overall business, according to several former x employees.in 2021, the last full year before musk took over x (then called twitter), x's annual revenue in brazil was $80 million to $100 million, equivalent to about 2% of the company's total revenue.

that may help explain why musk chose to close x's offices in brazil rather than comply with a judge's order to remove some accounts that were sharing alleged false information and hate speech. musk closed the x office in august, leaving the company without legal representation in brazil, which was one of the reasons a brazilian supreme court judge used to ban x last week.

market research firm emarketer estimates thatx has just over 40 million monthly active users in brazil, down nearly 5% from two years ago.before the ban, emarketer expected x's user base to fall another 6% over the next two years. some competitors have benefited from x's ban. decentralized social network service bluesky said on saturday that it added more than 1 million new users within three days of x's ban.

while brazil may only account for a small portion of x's overall revenue, any revenue is important to the company, which is still struggling to win back advertisers and pay down its massive debt. some large advertisers, such as apple and walt disney, that once bought x ads in brazil have stopped or cut spending on x. brazil's share of x's business has likely grown since musk acquired x in late 2022, especially as u.s. ad sales have fallen 50%.

as of press time, x has not yet commented on this. (author/xiao yu)

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