The bond between Elon Musk and Larry Ellison has not shielded the latter from Twitter's refusal to pay its outstanding debts to its partners.
Ellison helped with Musk's Twitter takeover by investing $1 billion in the platform as a token of friendship, but what has Musk done in return for Oracle's co-founder?
Elon Musk's Non-Paying Trend
Elon Musk took control of Twitter in late October. Since then, the tech mogul has been exhibiting a pattern of negligence by refusing to pay several companies and suppliers.
These companies include Google and Amazon for cloud services, a public relations firm, and landlords across multiple regions. This non-payment behavior has drawn attention and scrutiny.
According to insiders familiar with the matter, Oracle has been getting the same treatment. Representatives of the platform have initiated direct communication with Twitter employees and even former company personnel to recover overdue invoices, some of which amount to six figures.
Oracle has been providing data storage services to Twitter for several years, making their delayed payments all the more surprising, given the friendship between the two billionaires was not enough.
Elon Musk-Larry Ellison Friendship
The situation becomes more unsound considering the close personal and financial ties between Larry Ellison and Elon Musk. As long-time friends, Ellison invested $1 billion in Musk's $44 billion takeover of Twitter, becoming one of its largest investors within Musk's Twitter, officially part of X Holdings Co.
Ellison has been a consistent vocal supporter of Musk, having previously served on the board of Musk's electric car company, Tesla.
Currently, Twitter and Oracle have not provided any official comments or statements regarding the issue of unpaid bills and expenses. Their silence leaves room for speculation about the underlying factors contributing to this situation.
Since taking over, Musk has made significant changes on Twitter, with the workforce being reduced by 90%, the elimination of perks and bonuses, and a decline in confidence among advertisers characterized his approach.
The company's ad business is now in the hands of Linda Yaccarino, Twitter's new CEO. Although Musk has stepped down, he maintains responsibility for Twitter's technology, product, and engineering.
Despite the cost-cutting measures he has taken and strained supplier relationships, Musk has invested millions of dollars into a new AI project, which is actively working to enhance Twitter's video capabilities.
The ongoing issue of unpaid bills and expenses within Twitter, including Oracle's outstanding unfulfilled payments, raises questions about Musk's leadership.
The consequences of these actions are not only financial but have also made an impact on Twitter's reputation and future relationships with vendors. The situation highlights the complexities and challenges that arise when personal relationships intersect with business responsibilities.
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