Is Twitter now alienating the second largest advertiser?

Even before Musk bought Twitter last year, the company had signed a multi-year deal with Google. Although Twitter also operates its own servers, it has to buy additional cloud capacities from other companies.

Services are currently running on Google’s cloud platform, which primarily serve to ensure the security of Twitter and its users. For example, the fight against spam, the removal of content that shows sexualized violence against children, or the general protection of user accounts.

But since at least March 2023, at Musk’s instigation, Twitter hasn’t paid its Google Cloud bills. There is probably a kind of blackmail attempt behind it. Because Musk is betting that Google can be persuaded to renegotiate, like The Information reported.

Means: Musk wants to pay less than agreed. This procedure is typical for the Twitter owner. Musk also did not pay the rent for the Twitter office building for cost reasons – which brought him a lawsuit from the landlord. Other partner companies have also complained for similar reasons.

Now Musk’s plan could backfire. Like industry watchers Zoë Schiffer and Casey Newton writeGoogle is likely to discontinue the unpaid cloud services by the end of June 2023 – if Twitter continues to refuse to pay.

In the worst case, this would open the door to bots, spam attempts, hate speech and other unwanted content. Twitter is said to be working flat out to replace Google’s server capacity. However, it is not known how this should be possible in such a short time, nor is the standard indicates.

In addition, further adversity could come on Twitter on another level. Because Google is the second largest advertising partner of the short message service. Another example shows that Google will not be above throwing its financial weight against Musk and his plans.

Amazon is said to have used the bills for services on its cloud platform AWS, which Twitter had also no longer paid, as an opportunity to threaten to stop paying its bills for the advertising placed on Twitter. Outcome: uncertain.

It is clear that there is a lot of money at stake. The Google cloud deal is said to cost Twitter around 300 million US dollars for the current year 2023 alone. But: Google is said to be the second largest advertiser.

And advertising is Twitter’s biggest source of income, despite Musk’s (Twitter Blue) efforts. A 59 percent slump in revenue was recently reported in this important business area in particular. The prospects are rather bleak, as former employees of the New York Times said.