Social Media Giant, Twitter, Buys Tweetdeck for $40 Million

The social media company, Twitter.com, has finalised the sale of Tweetdeck for $40 Million in a mix of cash and stock, According to reports from CNN. The deal is yet to be officially announced, but there has been speculation that this deal would be done for some months with reports from TechCrunch estimating the sale being between $40 Million and $50 Million

If this deal is confirmed then it will re-enforce Twitter’s new focus on either downplaying third party apps or owning them. They seem determined to own Twitter’s key interfaces and platforms and have, in the past, purchased iPhone application Tweetie and have partnered with photo add on TwitPic.

Twitter On the Verge of Social Media Explosion

Although Twitter are a social media giant and some larger businesses have manged to utilise the platform for social media marketing, smaller businesses have often struggled to genuinely raise awareness of their products and services using Twitter, even when Facebook has been utilised successfully. With each acquisition that Twitter makes it seems more likely that Twitter is more likely to become accessible to the marketing efforts of smaller businesses.

Recent personnel changes, with Jack Dorsey replacing Evan Williams as Twitter’s head of product, it seems that a sense of urgency is being adopted by Twitter to create a sustainable business plan and that will have to involve small business.

Rake Mark Director, Philip Brassington said, “$40 Million, if this reported amount is correct, is a high price for the app and demonstrates both the penetration that Tweetdeck has and also the determination of the Twitter management team to build a profitable business model.”

Twitter has effectively paid near double the amount bid by rivals Ubermedia, who reportedly offered $25 million in February for the popular tweet management system.

Leave a Reply

Your email address will not be published. Required fields are marked *