X isn’t as ad-hungry as it was before Trump’s re-election, so it’s playing nice with Twitch

X and Twitch are making nice.

Last November, the platform formerly known as Twitter added Twitch to the list of defendants in a lawsuit that accuses advertisers of engaging in anticompetitive practices. Five months later, a lot has changed for X, and Twitch is being struck from the case. A court filing from Elon Musk‘s social media company revealed that “X and Twitch have entered into a memorandum of understanding resolving the action as to Twitch.” Translation: Twitch is off the defendant list.

The initial lawsuit — and the subsequent inclusion of additional defendants — came during an extended period of advertising turmoil at X. The chaotic and uncertain early months of Musk’s reign caused many agencies and brands to shift budgets away from the platform then called Twitter. X’s lawsuit argued that global entities like World Federation of Advertisers behaved in an anticompetitive manner by enforcing the so-called boycott.

In recent months, X has culled the targets of its lawsuit. Reuters notes that X previously came to terms with consumer goods giant Unilever. Now, it’s entering into an agreement with Twitch that requires the streaming hub to fulfill certain unspecified conditions in exchange for the cessation of legal action against it.

If you’re wondering why X seems less concerned about advertiser boycotts than it did last year, the answer has everything to do with Donald Trump

. Musk’s alliance with the newly-reelected President has increased X’s value while also giving the platform an advantageous cultural position. X’s influence on the outcome of the 2024 election has made it harder for advertisers to ignore, even if they have to accept Musk’s volatility.

X has used its White House ties to turn the tables on the ad industry. Instead of facing pressure from fleeing buyers, Musk’s ad team is strongarming agencies by reportedly threatening consequences for those who choose not to spend on X.

That strategy will be effective for as long as Trump and Musk remain in cahoots, but there’s evidence to suggest the partnership could be fraying. Musk reportedly asked the president to soften his sweeping tariffs, a proposal Trump brushed off.

As Truth Social also takes off, and some of Musk’s other companies see flagging returns, could the Chief Twit be falling out of favor in the capitol? If so, X might have to dust off one of its other tactics: Direct appeals to some of the biggest agencies in the ad world.