Seeking Alpha

Twitter buys leading social data provider Gnip

  • Gnip provides businesses with real-time and historical datasets (as well as value-added data "enrichments") for nine social sharing platforms, including Twitter (TWTR +0.5%), Foursquare, Tumblr, and WordPress. The company also offers managed API access for Facebook, Instagram, Google+, and several other platforms.
  • Twitter: "Gnip has played a crucial role in collecting and digesting our public data and delivering the most essential Tweets to partners ...  Together we plan to offer more sophisticated data sets and better data enrichments."
  • Gnip complements a data licensing business that accounted for 9% of Twitter's Q4 revenue, and which has been trying to grow via industry-specific partnerships.
  • The startup could also help Twitter provide higher-quality data to advertisers (already a priority) as it continues fleshing out its ad product lineup. Gnip's clients include ad tech and social media monitoring firms.
  • Deal terms are undisclosed. The acquisition might not go over well with Gnip rivals/fellow Twitter partners such as DataSift. Apple bought Twitter search engine/data provider Topsy last year.
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Comments (3)
  • benitus
    , contributor
    Comments (2290) | Send Message
    Seems like the deals that Twitter is getting into is becoming more and more bizarre. I've got no idea how this acquisition is going to improve TWTR's revenue by leaps and bounds, which it has got to do if it desires to turn its fortunes around. I think the management is desperately emulating Mark Zuckerburg's pattern of wild acquisitions to provide a smokescreen for its shortcomings and to justify its inability to produce results rapidly. Still short, with ways to go before covering. As I said before, if it goes below $40 and stays there, then the slide down to $30 will be triggered.
    15 Apr 2014, 12:18 PM Reply Like
  • 6269751
    , contributor
    Comments (813) | Send Message
    It's kind of a menacing acquisition. They can monitor the competition's data, for example, Wordpress. I'm not counting Twitter's management team out, but I am betting against them. I'm in the money on my Apr14 45 Put option, let's see what comes around in May. I have given up looking for a trigger, just bet against TWTR every month, so far I have won two and lost one.
    15 Apr 2014, 02:50 PM Reply Like
  • benitus
    , contributor
    Comments (2290) | Send Message
 long as the management isn't transparent about its outlay, I have great difficulty trusting them. Like you, I'm betting against them, not the company, but what the heck, so long as we make money, it shouldn't bother us too much whether they're good at what they do. Support was tremendous today, especially the volume in excess of 24million shares traded, so people are excited about the new acquisition lifting the company's fortunes. I suspect that the traders were the catalysts, which sparked a huge rally for the stock. Maybe, they covered their short positions. If the spike is not sustained, then the price will come back down again. Ultimately, the stock is still weak. Buying new toys will not change it very much, if their revenue doesn't improve significantly.
    15 Apr 2014, 04:29 PM Reply Like
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