May 12, 2015
Twitter has finally revealed just how much money it shelled out for live-streaming app Periscope and social media startup Niche.
The social media firm, in a filing with the U.S. Securities and Exchange Commission, reported it paid out $86.6 million earlier this year to acquire both companies.
The filing did not reveal, however, how much of that $86.6 million was spent on each company, although it is believed Periscope would have cost Twitter far more than Niche.
Back in February it was reported Niche cost about $30 million. If true, that would put the purchase price for Periscope at about $56 million.
Twitter, when it launched Periscope in March made only a brief statement.
“We think it’s a perfect complement to Twitter, which is why we acquired the company in January,” vice-president of product Kevin said in a brief blog entry.
Twitter has been encouraging users to stream videos via Periscope rather than Meerkat since the social network purchased the application earlier this year. The March launch comes on the heels of a minor battle between Twitter and Meerkat over what app users would be using to watch videos, which resulted in Twitter limiting Meerkat videos.
Twitter’s purchase of Niche, a New York start-up that matches social media stars with advertisers, was a good way for the site to up its cool factor as well as draw new users with Internet celebrities.
Niche, over the past year, had become a “key partner” to both Twitter and its six-second video platform Vine. In fact, Niche’s software supports much of the leading talent on Vine and Twitter, and the start-up was already working closely with Twitter’s brand strategy team before the purchase to service some of the best-known brands.
“The company has helped fuel the creator economy by developing leading technology, consisting of free, cross-platform analytics, as well as connecting the creative community directly with the world’s biggest brands,” Twitter said in a blog post to announce the purchase.
“As more users and creators use different products as a way to share what’s happening in their world, brands are also looking to partner with those individuals in hopes of generating moments that resonate with the people they are trying to reach. The talent and creativity across the entire media landscape is incredible, and we hope this acquisition continues to inspire people to create great content.”
Jennifer Cowan is the Managing Editor for SiteProNews.