Reports Indicate That Twitter Has Acquired Streaming Video App Periscope

Business Insider has reported Twitter’s acquisition of Periscope, a startup that is building an app that will allow users to stream live video from their phone. Although Periscope is still in beta, Twitter made the deal a few weeks ago according to the report.

Many details of the deal are unknown, such as the size or makeup of the agreement (cash versus stock, or a combination of the two). One investor source claims that the acquisition amount was “sizeable” (above $50 million). Another source has stated that it was between $75 and $100 million. A third source says that the deal was “small-ish,” although it’s unclear what range that would indicate.

Periscope is currently being used in closed beta, with a public launch date still being determined. It’s possible Twitter isn’t announcing the deal due to the fact that a similar app, Meerkat, recently launched and is going viral. Meerkat allows users to create a live stream and share the link for other people to watch. Another live streaming app, YouNow, has raised money from Venrock, Union Square Ventures and other VCs, and in recent months its growth has skyrocketed.

Twitter has been working hard to ramp up its video offerings in recent times, and if the company includes live video streaming capabilities in the future via Periscope, its video presence could increase dramatically.

Twitter is certainly known as a platform for breaking news events. For marketers and businesses, the live video streaming capability could provide new possibilities on the network. For example, at the recent Apple Watch event, many journalists streamed the event through Meerkat. If Twitter can position itself to provide this capability with a similar tool, via Periscope, the possibilities for the company’s expansion are massive. Imagine a marketer posting breaking news Tweets about an event that is related to their business, along with live streaming video of the proceedings, and the vision of highly effective and dynamic campaigns on Twitter come into view.

Periscope isn’t the first pre-launch startup that Twitter has acquired. When the company paid tens of millions of dollars for Vine, its now-popular video app, it was also being used in closed beta. Considering the success of that venture, Twitter’s early acquisition of Periscope makes sense for the company, as a way to capitalize on the recent explosive growth of similar live streaming platforms.

Twitter’s acquisition of Periscope illustrates just how focused the social media company has become on adding robust video offerings to its service. However, many questions still remain. Will Periscope be able to compete with the already popular Meerkat and YouNow? Will Twitter be able to position itself as a viable platform for live video streaming? How much did Twitter spend to acquire Periscope? It’ll be very interesting to learn more about this deal as details become available in the coming period.