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Audi, Cheerios Maker General Mills Pause Advertising on Twitter After Elon Musk Takeover

The decision of both firms to pause spending on Twitter ads comes a week after US automaker General Motors halted paid advertising on the service.

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General Mills and Luxury automaker Audi of America said on Thursday they have paused advertising on Twitter, days after the social media platform was acquired by billionaire Elon Musk for $44 billion (roughly Rs. 3,37,500 crore)

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"We will continue to monitor this new direction and evaluate our marketing spend," a General Mills spokesperson said.

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Audi of America, the Herndon, Virginia-based US unit of Audi - a Volkswagen Group brand - said it would "continue to evaluate the situation."

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The two companies join top US automaker General Motors, which last week said it had temporarily halted paid advertising on Twitter.

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The ad pauses come after Musk said in an open letter to advertisers last week that he wants Twitter to be "the most respected advertising platform" in a bid to gain their trust.

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Ad sales accounted for more than 90 percent of Twitter's revenue in the second quarter, and Reuters reported earlier that the company was struggling to keep its most active users who are vital to the business.