Elon Musk’s ‘thermonuclear’ lawsuit forces Media Matters to lay off dozens amid financial strain

Months after Elon Musk’s defamation lawsuit, Media Matters announces layoffs, citing the financial burden of the ongoing legal battle.

Image credit: James Duncan Davidson

Media Matters for America (MMFA), the nonprofit media watchdog, announced a significant round of layoffs on Thursday, attributing the decision in part to the financial strain imposed by an ongoing defamation lawsuit filed by Elon Musk. This development raises concerns about the influence of billionaires on free speech and media independence.

Media Matters, founded in 2004, has long been dedicated to monitoring and correcting conservative misinformation in U.S. media. The organization has targeted right-wing media outlets, including Fox News, for spreading pro-corporate and reactionary narratives. However, a report in November about “pro-Nazi content” appearing alongside ads on X (formerly Twitter), owned by Musk, triggered a fierce response from the tech mogul.

In reaction to the report, Musk launched what he termed a “thermonuclear lawsuit” against Media Matters, accusing the nonprofit of orchestrating a fraudulent attack on his company. Musk’s public statements at the time were incendiary, vowing to target not only Media Matters but also its board, donors, and network of alleged “dark money.” The lawsuit, filed in Texas, marks a significant escalation in Musk’s ongoing battle with the media.

Angelo Carusone, president of Media Matters, addressed the layoffs in a statement, emphasizing the organization’s need to adapt to the rapidly shifting media landscape. “We’re confronting a legal assault on multiple fronts and given how rapidly the media landscape is shifting, we need to be extremely intentional about how we allocate resources in order to stay effective,” Carusone said. “Nobody does what Media Matters does. So, we’re taking this action now to ensure that we are sustainable, sturdy, and successful for whatever lies ahead.”

The layoffs affected more than a dozen staff members, including researchers and digital producers who have been integral to Media Matters’ mission. Among those terminated were Kat Abughazaleh, Brendan Karet, Bobby Lewis, Alex Paterson, Ethan Collier, and Carly Evans. Many of these employees took to social media to express their dismay and to direct their ire at Musk for his role in the organization’s financial struggles.

“Bad News: I’ve been laid off from @mmfa, along with a dozen colleagues,” tweeted Kat Abughazaleh. “There’s a reason far-right billionaires attack Media Matters with armies of lawyers: They know how effective our work is, and it terrifies them (him).”

This wave of layoffs at Media Matters comes at a time when digital and legacy media outlets across the country are facing severe financial challenges. The Los Angeles Times, Wall Street Journal, Washington Post, Business Insider, Vice Media, CBS News, and others have slashed thousands of jobs in recent months due to dwindling advertising revenues and declining online traffic. Some outlets, like The Messenger, have even shut down completely.

Musk’s actions against Media Matters have sparked a broader debate about the role of wealthy individuals in shaping media narratives and silencing criticism. Musk, who has publicly championed himself as a “free speech absolutist,” has frequently taken aggressive steps to suppress critical voices. This lawsuit against Media Matters is part of a pattern of using legal threats to intimidate and financially cripple his detractors.

Legal and media experts have voiced concerns about the implications of Musk’s lawsuit. In March, a similar defamation lawsuit brought by X against the Center for Countering Digital Hate (CCDH) was dismissed by a federal judge in California. U.S. District Court Judge Charles R. Breyer ruled that the case was evidently an attempt to punish CCDH for its critical publications about X, highlighting the lack of legitimacy behind such legal actions.

Tim Karr, senior director at the media advocacy group Free Press, criticized Musk’s tactics in an op-ed for Common Dreams, stating that Musk’s “attempts to silence his critics are not surprising to anyone who has followed Musk’s erratic behavior” over recent years. Karr argued that Musk’s actions demonstrate a refusal to tolerate any criticism, which starkly contrasts with his purported commitment to free speech.

The case against Media Matters draws parallels to the infamous Gawker lawsuit bankrolled by billionaire Peter Thiel, which led to the bankruptcy and closure of the media group. These instances underscore the potential for wealthy individuals to use their financial power to suppress dissenting voices and stifle independent journalism.

“It’s a chilling reminder that our work threatens those in power,” remarked laid-off Media Matters journalist Kat Abughazaleh. “But the fight for truth and accountability is more important now than ever. We must continue, undeterred.”


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Alexandra Jacobo is a dedicated progressive writer, activist, and mother with a deep-rooted passion for social justice and political engagement. Her journey into political activism began in 2011 at Zuccotti Park, where she supported the Occupy movement by distributing blankets to occupiers, marking the start of her earnest commitment to progressive causes. Driven by a desire to educate and inspire, Alexandra focuses her writing on a range of progressive issues, aiming to foster positive change both domestically and internationally. Her work is characterized by a strong commitment to community empowerment and a belief in the power of informed public action. As a mother, Alexandra brings a unique and personal perspective to her activism, understanding the importance of shaping a better world for future generations. Her writing not only highlights the challenges we face but also champions the potential for collective action to create a more equitable and sustainable world.