Twitter Acquires Another Pre-Launch Video Startup Periscope
Twitter did not disclose its last month’s acquisition of a pre-launch video startup, Periscope, whose live video streaming app is still in beta testing. However, the sources with knowledge about the acquisition, have confirmed that the social-media company successfully clinched the deal a couple of weeks ago, reports the Business Insider.
The source who gave the “100%” surety that the acquisition occurred, refused to leak other details of the acquisition deal. Interestingly, the sources told variant figures about the summation of the deal. According to Business Insider, one investor source told that the amount was more than $50 million, which he regarded “sizeable.” As per the second source, amount of acquisition was greater than $50 million — somewhere between $75 million and $100 million.
Similarly, the third one said a different nature of the deal altogether as he considered the amount which Twitter had to spend in order to buy the startup was “small-ish.”
Whatever the amount it got, will presumably be welcomed by the app as its own earnings were not “sizeable” at all. In fact, the novice app has just raised a few million dollars.
The founders of the app seem quite contented with their fashion of business as this is second time when Keyvon Beykpour and Joe Bernstein have sold startups shortly after developing them. Before the recent acquisition, another startup Terriblyclever from the same developers was purchased by Blackboard.
By the same token, this is not Twitter’s first acquisition of a pre-launch startup. It struck a similar deal for its current video app Vine. Which was then running in closed-beta when it paid tens of millions to acquire it.
Coming back to the question of Twitter’s hesitation in announcing the deal, its behavior has started making some sense now. This was probably due to the fact that Meekat, a similar live video app, was extremely popular among its users. So the social-media site, perhaps, did not want to bring in a new competitor to one of its own darling apps.
Abubaker Zahoor writes on diverse topics with special interest in innovations, tech-ethics, and inter-and intra- organizational business relationships.