When Twitter acquired Vine in 2012 in an attempt to bring video to social media, hopes were high. Twitter was thriving with an ever-expanding user base and Vine was all the rage. The $30 million price tag seemed like a steal. Now, Twitter is officially closing vine down. Is this a sign of things to come? Can Twitter be far behind?
Twitter Officially Closed Vine Down
Twitter was just at the center of a possible bidding war between tech giants including Google, Microsoft, Salesforce, and Verizon. Now, with no prospective buyer and shares have been all over the place. Shutting down Vine seems like a long shot play to make the company profitable, but is it time for Twitter to tweet its goodbyes?
No reason was provided for Vine’s closing, but it seems fairly obvious. The announcement came just hours before Twitter announced layoffs of up to 8 percent of its workforce. Twitter is doing everything it can to cut costs and save the company. Just a few weeks ago Twitter’s stock was soaring. It was an attractive acquisition target and a perfect stepping stone for Google to step into social media. But that didn’t pan out, and Twitter’s shares came back down to Earth.
Social media is alive and well. Facebook and Instagram are thriving, but once Instagram added videos, Vine really no longer held any appeal. Snapchat has supplanted the 6 second video app. Even Myspace still exists and is alive and well. But Twitter couldn’t keep up with the competition. Active users and advertising revenue are both dwindling. Twitter is betting on new live streaming partnerships with the NFL and other companies to save the company, but at this point, It looks like just a matter of time before Twitter itself is shuttering as well.
One avenue Twitter could explore is becoming a nonprofit. While revenues may be down, Twitter has been influential in movements and grassroots campaigns. During the Egypt revolution in 2011, it was Twitter which sparked the country’s change. Bloggers used Twitter to report on strikes, alert the movement about police activity, and draw attention from around the world to Egypt’s plight. The black lives matter movement started as a Twitter hashtag. Users share stories of trauma with each other in solidarity. The microblogging platform is a useful communication tool and can be a force for good here. And by becoming a nonprofit, Twitter could escape from the pressure of investors and Wall Street. But that’s highly unlikely. Twitter will play out its partnerships with the NFL and soundcloud, but those moves are most likely not enough to save the company.
You can also check this video about Twitter closing Vine soon by New York Daily News.
Expect Twitter (TWTR) shares to continue to slide, especially long term.
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