Google is cutting ties with Amazon-owned One Medical, but it’s clear it’s not because of its $3.9 billion acquisition of the e-commerce giant – Alphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN)

Alphabet Inc. GOOG GOOGLE Google severed business ties with One Medical, a primary care provider acquired by Amazon.com Inc. AMZN for $3.9 billion.

What happened:Google, One Medical’s largest business client so far, has decided to terminate its corporate contract with the healthcare company following Amazon’s acquisition of One Medical last year, Business Insider reported.

The deal, which offered Google employees discounted or free One Medical memberships and allowed One Medical care centers to open in some Google offices, is set to expire at the end of 2024.

Google was an early backer of One Medical and was its largest business client for many years. By 2020, One Medical disclosed that Google accounted for 10% of its net revenue.

In 2021, that figure fell below 10%, and then One Medical stopped making its financials public after being acquired by Amazon.

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A Google spokesperson confirmed in an interview that the current cooperation with One Medical will change after 2024, but emphasized that this decision has nothing to do with the fact that Amazon has become the owner of this medical facility.

The spokesperson added that existing One Medical centers on Google’s campus have already transitioned to Premise Health to provide more services, such as pharmacy, gynecology and coordinated care on-site.

An Amazon spokesperson told Business Insider that Google employees and their dependents will continue to benefit from One Medical memberships “sponsored” by their employer until the end of 2024.

Why is this important?The end of Google’s business relationship with One Medical comes amid significant changes at the healthcare services company.

In September, the general director Amir Dan Rubin resigned from One Medical after six years on the job, just over a year after the company was acquired by Amazon.

The leadership change was followed by major job cuts in February, part of a cost-cutting initiative that saved One Medical $100 million.

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Reservation: This content was prepared in part using AI tools and was reviewed and published by Benzinga editors.

Photo courtesy of: Amazon