Twitter to Buy Niche, a Talent Agency for Social Media Celebs
Twitter is finally getting serious about Vine.
On Wednesday afternoon, the company announced it plans to acquire Niche, a New York-based startup that pairs content creators popular on services like Instagram, Tumblr and Twitter's own Vine -- with brand advertisers. The pricetag may range from $30 million to $60 million, according to Recode. Twitter declined to comment. Niche, founded in June 2013, has raised just over $3 million.
For Twitter, the acquisition signals an attempt to ramp up its video advertising, a category dominated by larger rivals Google and Facebook. At the moment, Twitter does not make any money off of Vine, the six-second video platform it acquired in 2012. Plenty of young starlets do, however. Some earn in excess of five-figures for one video on Vine. And Niche serves as their agency. It charges advertisers and agencies hefty fees to access Vine users with tremendous followings.
"As more users and creators use different products as a way to share what's happening in their world, brands are also looking to partner with those individuals in hopes of generating moments that resonate with the people they are trying to reach," Baljeet Singh, Twitter's director of product management, wrote in a post announcing the acquisition.
For years, the cabal of stars on YouTube have used the platform to net advertising dollars. With Niche, it looks like Twitter can do the same, even on other platforms where young celebrities flourish, like Facebook's Instagram and Yahoo's Tumblr.