Twitter has just acquired Niche, which it describes as a “service provider” for the growing “creative community” on Vine and Twitter. The company didn’t disclose the terms of the deal but Re/Code and Business Insider report it was likely between $30 million and $50 million.
Niche has built strong connections with the homegrown celebrities on Vine (and Instagram) by matching them with brands that want them to advertise their products. There’s other social media companies that do the same, profiting off networks of influencers on Instagram, Snapchat, Pinterest, Vine, Twitter, and Facebook.
For a long time Twitter was out of this loop of moneymaking. It’s a smart move for Twitter to buy Niche because in addition to generating revenue through the star-brand deals, the company also gets plugged into its own community of influencers.
As I wrote about in November, until recently Twitter largely ignored its Vine stars. Its competitors, like Facebook and Instagram, started courting them away in the process. Arguably the largest Vine star, Jerome Jarre, even jumped ship to focus on Snapchat.
With the Niche purchase, it seems the company has started to understand the importance and revenue potential of its creative talent.