Don Lemon Could Get Huge Payout From Elon Musk

Don Lemon could receive a significant payout from Elon Musk after the tech mogul abruptly canceled his new show on X.

After purchasing X, formerly Twitter, in 2022, Musk vowed to use the microblogging site to champion free speech. The 52-year-old recently offered a platform to Lemon—who was fired from CNN in April 2023 following accusations of misogyny on set—and other beleaguered public figures and cultural commentators.

However, Lemon says Musk canceled his partnership with X hours after he interviewed the billionaire for The Don Lemon Show.

Journalist Kara Swisher posted on social media about Lemon's termination, suggesting the former CNN anchor could receive a substantial payout as a result.

"Elon Musk sent a terse text to his reps: 'Contract terminated' after an interview Lemon did with Musk last Friday that was not to the adult toddler's liking, including questions about his ketamine use," Swisher wrote on X.

"X will have to pay out, so another unnecessary cost to a business going in the wrong direction," she continued.

Newsweek has reached out to Don Lemon, Elon Musk, X and Kara Swisher for comment via email.

Alton Harmon, Corporate General Counsel, said it's not so simple. Whether Lemon receives a payout from X depends on the deal, with the 58-year-old likely to have been hired as a contractor rather than an employee.

"There are certain legal protections that come along with the status of employee in the United States," Harmon told Newsweek.

"An agreement between a content generator like Lemon and X would make it clear there is no employer-employee relationship."

According to Adam Muery, a litigator and senior partner at Texan Legal, Musk likely included a "great number" of clauses to terminate contractors on a whim.

"If the contract had a guaranteed investment with a certain number of episodes, then that may lead to a payout," he told Newsweek.

"But the ultimate question, which could lead to litigation, is whether Musk was acting in good faith when exercising the termination clauses," Muery continued.

Tuesday, on Pivot, Swisher's podcast with Scott Galloway, Lemon said he did not sign a contract with X, which complicates matters further.

Galloway, a marketing professor at NYU, asked Lemon if he would be paid out following the cancellation. Lemon responded: "That is something you'll have to ask my representatives. We're still in the middle of that. I have an agreement with them, and I expect them to abide by that agreement. If they don't, they're in breach."

Harmon said: "X is clearly setting up its argument that Lemon is not due a penny in absence of a signed contract.

"Any dispute could turn on the intent of the parties and whether a 'verbal contract' was created, which could then determine what, if any, payout is due."

While Lemon has threatened legal action over his termination, the odds of Musk settling without a fight appear slim.

"The wealthiest individuals are often the least likely to want to settle. They don't want to be seen as easy targets and thus invite litigation from other potential plaintiffs," Muery said.

"I've seen high-net-worth individuals spend $100,000 in defense costs to avoid paying a $5,000 settlement. It's more about power and control than dollars and cents," he continued.

In January, X announced that Lemon would bring The Don Lemon Show to the social network, with sports radio host Jim Rome and former Hawaiian Congresswoman Tulsi Gabbard also launching shows on the platform.

The trio followed conservative commentator Tucker Carlson, who began broadcasting on X after he parted ways with Fox News in April last year.

Lemon announced the cancellation of his show via a statement posted to X on March 13.

"Elon Musk has canceled the partnership I had with X, which they announced as part of their public commitment to amplifying more diverse voices on their platform," he wrote.

"He informed me of his decision hours after an interview I conducted with him on Friday," he added.

Lemon said Musk "publicly encouraged" him to join X, with the billionaire's team repeatedly pursuing the deal and making "significant commitments about the support X would provide for the show."

He continued: "I made the decision to work with them in a unique partnership that I believed would ultimately assure my work would be available to most people, in the largest possible venue.

"I took Elon and his management team's word that they, for the first time, were interested in working directly with new and diverse voices."

Despite the show's cancellation, the premiere episode—including the interview with Musk—aired Monday. The veteran journalist quizzed the Tesla CEO on his reported ketamine use, his relationship with Donald Trump and whether he's working toward a flying car.

Lemon was fired by CNN in April, after working for the news channel for over a decade. His firing followed allegations of sexism behind the scenes and backlash over his comments about former Republican presidential primary candidate Nikki Haley.

The anchor was criticized online after suggesting that women over 50, including Haley, are "not in their prime" during a February 2023 episode of CNN's This Morning.

Lemon apologized for his remarks and denied the accusations of sexism on set. He said he was "stunned" by the firing.

Update 03/22/24 11.33 a.m, ET: This article was updated to reflect Alton Harmon's title.