Twitter’s newly inducted CEO, Linda Yaccarino, surely knows how to mend broken ties. This time, Yaccarino fixed a payment issue that Alphabet (NASDAQ:GOOGL) was facing with Twitter even before she assumed the role of CEO. Under the former’s leadership, Twitter has resumed payment for utilizing Google’s cloud services, which amount to approximately $20 million per month. These services were utilized by Twitter for various purposes, such as anti-spam technology and data warehousing, and had remained unpaid for the past few months.
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Twitter and Google have maintained a longstanding relationship, with Google spending on Twitter’s advertising space. However, due to the prevailing macroeconomic uncertainty, Google’s advertising spending experienced a decline this year. Even so, Yaccarino had a fruitful rendezvous with Google Cloud’s CEO, Thomas Kurian. As a result, both parties have agreed to strengthen their business ties with a revival in ad spending. Plus, Google has agreed to start using Twitter’s application programming interface (API), which also enables access to some of Twitter’s data. Twitter could even generate revenue by allowing access to its APIs.
Twitter’s Issues Under Musk’s Regime
Ever since Tesla (NASDAQ:TSLA) CEO Elon Musk acquired the social media platform in October 2022, he has been faced with several challenges, including employee exodus, a massive cut in advertising spend, and issues related to his lax content moderation stance. So much so, that Twitter has been accused of late payments on many accounts, including rent, advisory fees, and others. Goldman Sachs (NYSE:GS), for one, is certainly complaining about non-payment of rent, which is leading to the ballooning of commercial real estate (CRE) loan delinquencies.
With the appointment of Linda Yaccarinoo as the new CEO, Musk has broadened the horizons of Twitter’s partnerships. Yaccarino brings years of experience and a strong network of ties from the advertising arena. Twitter’s private investors are hopeful that Yaccarino can lead to a turnaround of the shattered company and bring back enthusiasm for the social media platform.
