Elon Musk's Twitter Is Cutting Costs Left And Right — Why Is It Still Finding Spare Change To Pay Google?

Twitter‘s cost-cutting drive under Elon Musk has resulted in lawsuits and layoffs, and while many partners are antagonized, Alphabet Inc. GOOG GOOGL reportedly remains an exception. 

What Happened: Ever since Musk acquired Twitter in October last year, the microblogging site has jettisoned multiple partners and employees with cost-cuttting measures — but it appears the company has made an exception for Google, reports 9To5Google. 

See Also: Has Elon Musk Found Someone ‘Foolish Enough’ In Steve Davis To Pass On Twitter CEO Seat?

Despite Twitter’s attempts to negotiate a contract requiring $1 billion in Google Cloud spending over five years, the social media giant continues to pay its bill to the company without interruption. Google is said to have refused the negotiating terms. 

Many factors seem to be at play here, considering the two companies have worked together on multiple fronts. This includes a licensing deal Google and Twitter struck in 2015 to have the platform’s posts instantly appear on Search results. 

The deal was highly successful and is presumably a continuing revenue source for Twitter, the report noted.  

Why It’s Important: Amazon.com Inc. AMZN has threatened Twitter with withholding payment for advertising because the site has refused to pay its Amazon Web Services bills for cloud computing services, reported The Information. 

Google is a more prominent advertiser on Twitter than Amazon. The tech giant’s Android ads about Google Messenger are common on the platform. 

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