Dive Brief:
- Twitter is currently vetting multiple term sheets from companies interested in purchasing its six second video-looping app Vine, TechCrunch reports. One source told the publication some of the offers are lower than $10 million.
- Vine announced Twitter was closing down its services for good on Oct. 27. The news followed Twitter’s Q3 earnings reports.
- Twitter declined to provide comment to TechCrunch, and the publication could not confirm the name of any bidders. Several Asia-based companies made bids for Vine following news of its shuttering.
Dive Insight:
Twitter may’ve trimmed Vine from its mobile lineup, but it might be looking to make a quick buck from the app instead of shipping it completely off into the digital ether. Twitter cut 9% of its workforce following Q3 earnings late last month, and revenue earned from a Vine acquisition could provide even more financial cushion and flexibility as the platform seeks to steady its ship heading into next year.
But the decision to sell Vine instead of repurposing it or closing it altogether might come back to bite Twitter, as TechCrunch notes. Twitter has put great effort this year behind upping its live video offerings, and Vine is a video service, so giving another company the built-in infrastructure and technology the app provides could turn Vine into a competitor for its former parent.
However, the reportedly low valuation of Vine — with bids potentially dipping below the $10 million mark —suggests that the only threat such a low ball sale will pose to Twitter is a hit to its brand image. Vine once thrived on the passion of its creators and small but dedicated fan base, but even those began to migrate to other platforms like Instagram, YouTube or Snapchat in the app’s latter days.
As more and more social media sites offer video options, the appeal of an app that can only loop content for six seconds becomes extremely limited and niche, so it would not be surprising if Vine is simply folded over or integrated as a feature of another, larger service.
