Twitch makes deal to escape Elon Musk suit alleging X ad boycott conspiracy
Twitch has struck a deal with Elon Musk's X (formerly Twitter) to eject itself from a lawsuit over an ad boycott shortly following Musk's takeover of Twitter in October 2022.
In a court filing Monday, X lawyers provided no details on the deal but explained that "X and Twitch have entered into a memorandum of understanding resolving the action as to Twitch," so long as "certain conditions" are met by December 31.
Musk has called for "criminal prosecution" of anyone involved in the ad boycott. But while Twitch was one of about a dozen companies that X directly accused of conspiring to withhold billions in ad revenue from then-Twitter, it was not part of X's initial complaint. The livestreaming service was only added to the lawsuit after X amended its complaint in November to pull in more advertisers, and since then, Twitch has never responded to any of X's accusations. Instead, in its filing, X speaks for Twitch.