Broadcaster Don Lemon has filed a lawsuit against Elon Musk and the social media platform X, alleging that he was not paid following the abrupt termination of a content agreement. Lemon, formerly a CNN anchor, claims Musk agreed to compensate him $1.5 million annually for creating exclusive shows on X, but the arrangement was called off after a particularly challenging interview.
Agreement Details and Termination
Reportedly, in January, Lemon and Musk reached a verbal agreement that included financial backing and a share of ad revenue. The deal also had provisions for additional cash incentives tied to follower growth. However, by March, the relationship had deteriorated after Lemon’s interview with Musk covered sensitive topics, including Musk’s drug use and political beliefs. This interview contributed to the sudden withdrawal from the agreement.
The New York Times reports that Lemon’s lawsuit points out that there was no formal contract, only verbal assurances from Musk, who stated that signed documents were unnecessary. Lemon considered this opportunity significant after leaving CNN. His legal representative, Carney Shegerian, argues that X executives exploited Lemon to attract advertisers before canceling the partnership, which harmed Lemon’s professional standing.
Contentious Interview and Legal Actions
In his interview with Musk, Lemon pressed on topics like Musk’s alleged ketamine use, views on transgender rights, and diversity, equity, and inclusion hiring policies. Lemon also addressed Musk about tweets that seemed to endorse the “great replacement theory.” Hours after this interview, Lemon received a text from Musk informing him that their agreement was nullified. Shortly after the deal’s termination in March, Lemon’s representative indicated that legal action might be pursued.
X’s CEO, Linda Yaccarino, has publicly declared that the platform intends to prioritize video content, entering into similar agreements with notable figures such as former Fox News host Tucker Carlson, ex-Democratic lawmaker Tulsi Gabbard, and sports commentator Jim Rome. Despite these deals, many shows are not yet available on X.
However, as I reported last week, Yaccarino is facing challenges in boosting X’s revenue and in attracting advertisers. Musk’s erratic, and sometimes controversial, behavior is reportedly making Yaccarino’s task harder.
X has been facing exacerbated financial hurdles due to Musk’s unpredictable actions. The company’s US revenue declined by 53% to $114 million in the second quarter compared to the previous year, underscoring the challenges Yaccarino faces in rejuvenating the ad business. Insiders note that Musk’s decisions have consistently undermined Yaccarino’s attempts to restore X’s financial health over the past year.
Last Updated on November 7, 2024 3:25 pm CET
