Gnip and Twitter had been playing nicely for a long time, but much like a twin that swallows its sibling in the womb, it was time for Twitter to acquire Gnip.
The analytics firm had been helping Twitter climb into the black. Apparently it did so well that the social media giant developed the means to purchase its partner. Gnip has a proven reputation for utilizing social media feeds, analyzing them, and then making that information financially useful.
There are four companies that have that level of access to Twitter feeds, the others being WordPress, Tumblr, and FourSquare.
Of course, public sites like Facebook can also get access to this information, so what made Gnip a must-have? Twitter’s VP of Business Development and Platform Jana Messerschmidt said, “Gnip has played a crucial role in collecting and digesting our public data and delivering the most essential Tweets to partners.”
Twitter certainly knows what it’s doing in the realm of all things marketing, but even a social media star can use a little help.
Messerschmidt continued, “We believe Gnip has only begun to scratch the surface. Together, we plan to offer more sophisticated data sets and better data enrichments, so that even more developers and businesses big and small around the world can drive innovation using the unique content that’s shared on Twitter.”
For others who are using Gnip, service will remain the same. They’ll still get complete access to Gnip data, but Twitter will help by expanding how much data is gleaned from social media sites.
Until any expansions are made, Twitter gets to sit back and watch the cash roll in from the surplus of tweets of its user base. Chris Moody, CEO of Gnip, says, “We’ll be able to support a broader set of cases across a diverse set of users, including brands, universities, agencies, and developers big and small. Joining Twitter also provides us access to resources and infrastructure to scale to the next level and offer new products and solutions.”
It seems to be a win-win situation for everyone involved, and that includes stockholders.
Bringing home the bacon
When the acquisition was announced, Twitter’s stock shot up by more than ten percent and Wall Street was all a’twitter. That’s great news for investors and stockholders who have been watching Twitter stock steadily decline since the beginning of the year.
Now, analysts are saying that Twitter has revamped its financial strategy and has what it takes to be a real money-maker someday.