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Summary:

A little South by Southwest love, a lot of mainstream press ink, and some overloaded servers have convinced Obvious to turn Twitter, its little hotshot web and SMS service, into its own company. Evan Williams’ Obvious Corp. said this week that it’s spinning off the tool […]

A little South by Southwest love, a lot of mainstream press ink, and some overloaded servers have convinced Obvious to turn Twitter, its little hotshot web and SMS service, into its own company. Evan Williams’ Obvious Corp. said this week that it’s spinning off the tool into its own firm.

The time has come for Twitter to make that leap. We’re happy to announce that Twitter is graduating from the home of Obvious and becoming its own company—appropriately named, Twitter, Inc.

Williams said Twitter creator Jack Dorsey would serve as the new company’s CEO.

Liz’s story from Found+Read last week indicated Williams’ plans: “Twitter hasn’t raised any outside funding yet, though Williams says ‘It’s likely we’ll need to before long, but we’re past the point where I think it would be too early.’”

When your service name gets that much more high profile than your company moniker, its time to send the kid off to college. Williams says:

Twitter continues to grow, it will gain less from being under the Obvious umbrella and perhaps even push that umbrella until it flips inside out. Which doesn’t make the umbrella happy, and just gets in Twitter’s way. Perhaps I took the metaphor too far.

Perhaps, but we know what you mean.

  1. Jay (living in First Life) Thursday, April 19, 2007

    Big deal. Twitter is useless. It enables bloggers to feel important about themselves. There is a term known as circle j___. That applies to this situation as well.

    This is another product that no one outside of the blogging/Bay Area world cares about. My guess is someone big will buy them (e.g. eBay, Yahoo, Google) and waste more stockholder money. The move to make it a distinct entity is just preparing Twitter for that.

    I wonder what Roald Dahl would say about our little twits?

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  2. Jay, I do agree that all bloggers are slightly narcissistic. I do disagree with you. I think that Twitter has some great value.

    I’m just not sure what else could be on their roadmap that would warrant it having its own company. I guess we shall see.

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  3. Yes we will see if Twitter continues to gain traction.
    http://www.twittown.com

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  4. There was a time when phone companies would invest in innovative startups that promised to increase phone usage. Got an idea that causes people to use their phones? Get development money from Verizon. Those days might be gone, but mobile/SMS is still a money maker, and Twitter would boost SMS usage big time if SMS were more afforably packaged, no?

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  5. [...] with the San Francisco-based company that started out as a way to group alert friends via SMS, but now has become a communications tool and microblogging service. Several feeder start-ups that rely [...]

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