Thursday, May 26th, 2011 - OVUM
Ovum principal analyst Eden Zoller:

“Twitter’s $40 million plus acquisition of TweetDeck is on balance a defensive move and highlights a number of concerns about Twitter’s strategy.

“The acquisition of TweetDeck is part of an ongoing move by Twitter to gain more control over its ecosystem, where growth and innovation are increasingly driven by third parties. At Twitter’s developer conference last year it announced that 75% of Twitter traffic is driven by third party applications and partners, TweetDeck included.

“The concern for Twitter in this scenario is that the applications that are driving growth are largely outside of its control in terms of direct monetization. Twitter has been developing its own official applications or buying up popular rivals, particularly on the mobile front. It is also discouraging developers from producing new Twitter clients, ostensibly to ensure a consistent user experience although the unspoken message is that Twitter does not want developers to compete against it.

“Twitter wants to take more control of its ecosystem in order to better monetize its platform, an ongoing struggle for the company. Yet if Twitter addresses this in a way that thwarts developers then it will alienate the community that has played a critical role in making Twitter the popular service it is today and building the ecosystem that supports it.”

-ENDS---
NOTES TO EDITORS
To arrange an interview or for further details regarding this release please contact Delphine Jersier on +61 (0)3 9601 6725, or email [email protected]

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Twitter’s $40 million plus acquisition of TweetDeck is on balance a defensive move and highlights a number of concerns about Twitter’s strategy.

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