Just-In: Elon Musk Faces Legal Hurdles Amid X’s Content Deal Cancelation

Elon Musk, Tesla CEO and billionaire owner of X is facing legal challenges over a canceled content deal with former CNN anchor Don Lemon. Lemon has filed a lawsuit against Musk and X, alleging that the tech mogul refused to pay him after their agreement fell apart. This development adds to the ongoing controversies surrounding Musk and his management of X.,Don Lemon’s lawsuit claims that Elon Musk canceled their content deal after a contentious interview. Lemon had agreed to bring his new show to X as part of the platform’s effort to create premium content. Besides, he claimed Musk had promised Lemon $1.5 million annually, a share of advertising revenue, and additional cash incentives as Lemon’s account gained followers, The New York Times reported.,However, the deal fell apart after Lemon’s interview with Musk in March. During the interview, Lemon questioned Musk about his drug use and political views, which led to a heated exchange.,Following this, Elon Musk canceled the deal, claiming that Lemon’s approach was unoriginal and akin to “CNN, but on social media.” Musk’s decision came despite earlier reassurances that Lemon’s show would receive financial support regardless of the content’s nature.,Meanwhile, Lemon’s lawsuit, filed in California Superior Court in San Francisco, states that he did not sign a formal contract. He relied on Musk’s verbal assurances that there was no need for paperwork.,Lemon’s attorney, Carney Shegerian, accused X executives of using Lemon to boost their advertising sales pitch before canceling the partnership and damaging Lemon’s reputation.,Also Read: MicroStrategy Bitcoin Debt At Risk If Cash Flows Don’t Improve,After Elon Musk acquired X in 2022, the platform faced numerous challenges. Advertisers left due to Musk’s erratic posts and an increase in misinformation and hate speech. Linda Yaccarino, X’s chief executive, proposed creating shows for the site to attract advertisers.,Meanwhile, she announced deals with Lemon, former Representative Tulsi Gabbard, and sportscaster Jim Rome in January. While Rome’s show has since debuted on X, Gabbard’s show has not.,Besides, Lemon’s lawsuit reveals that he was pressured to announce the deal and attend an event with Yaccarino at CES, the annual technology conference in Las Vegas. X employees warned that the deal would be withdrawn if Lemon did not attend. After the event, Lemon began production on his show, which X promoted heavily.,However, the March interview proved to be a turning point. Elon Musk texted Lemon’s agent to cancel the contract, later stating publicly that Lemon’s show lacked originality. This statement further fueled the legal battle, with Lemon arguing that Musk’s actions damaged his professional reputation and career prospects.,Also Read: European Central Bank Braces For Two More Rate Cuts, Is US Fed Next?,