After a payment dispute, Twitter CEO Linda Yaccarino stepped in to help repair the relationship between the social media company and Alphabet’s Google, according to a source with knowledge of the matter, demonstrating her early management approach.
According to sources familiar with the matter, Twitter is now paying Google for its cloud services after not consistently paying some of these expenses. Recently, these expenses exceeded $20 million per month, according to sources familiar with the matter.
One person stated that Yaccarino participated in a video call with Thomas Kurian, the CEO of Google Cloud, last week to help restore the relationship between the two companies. According to the source, the companies are discussing a broader partnership that could include Google’s ad expenditures on Twitter and Google’s use of Twitter’s application programming interface, or API, which provides access to some Twitter data.
Twitter and Google have had extensive commercial relationships. Twitter has utilized Google’s cloud services for a variety of purposes, including anti-spam technology and data-warehousing services, according to individuals with knowledge of the matter and previous blog posts from both companies.
According to third-party estimates, Google’s advertising expenditures on Twitter’s platform have declined in recent months. In May, Google’s advertising expenditures on Twitter in the United States decreased by more than 90 percent compared to the same month last year, according to estimates from market intelligence firm Sensor Tower.
Previous reports by Platformer indicated that Twitter was not paying its Google Cloud expenses. Wednesday morning, Bloomberg reported that the company had resumed payment.
According to people familiar with the matter, Twitter’s spending on Google’s cloud services became a focus internally after Twitter owner Elon Musk acquired the company late last year and swiftly placed an emphasis on cutting costs and reducing reliance on vendors.
Under Musk’s ownership, Twitter has been accused of not paying some debts he inherited when he took over and implementing a more frugal spending strategy. Since Musk’s takeover, Twitter has faced more than 20 lawsuits from landlords, consultants, and other vendors alleging unpaid debts, according to a Wall Street Journal review of court documents from across the country. Some of the lawsuits have been withdrawn, while others continue.
Yaccarino, who became Twitter’s CEO earlier this month, is tasked with leading a business that has experienced turbulence since Musk’s $44 billion acquisition of the company in October. Concerns regarding content moderation and the company’s new direction prompted a mass exodus of advertisers from Twitter following Musk’s takeover. Some businesses have reportedly resumed spending on the platform.
Musk has turned to Yaccarino, the former head of advertising at NBCUniversal, because he is a seasoned advertising executive with a reputation for working diligently to win clients. She oversaw a team at NBCUniversal that managed partnerships with Twitter, Snap, and YouTube owned by Google.
