On February 18, Bloomberg reported social networking service Twitter acquired social video-editing startup Chroma Labs. Before being purchased, the seven-person company made software that allowed consumers to customize their videos for Instagram and Snapchat.
As part of the transaction, the firm’s staff will be absorbed into the corporation’s Conversations division. Furthermore, Chroma Labs will not be making any more updates to its application. Neither organization disclosed financial details of the deal.
Why Twitter Bought Chroma Labs
The San Francisco-based social media network acquired Chroma Labs for both its products and employees.
Former Facebook staffers John Barnett, Joshua Harris, and Alex Li founded the startup in 2018. Before becoming entrepreneurs, the trio brought the ephemeral video feature Stories to Instagram. Last year, the San Mateo, California company released its eponymous application, which allows users to filter and color shift their photos and videos.
Presently, Twitter is a mostly text-based networking service. However, the company could experience a surge in consumer interest if it releases a Stories-like feature. Indeed, Instagram’s implementation of ephemeral video has helped content creators build up significant audiences. Also, its advertising capability has aided the photo-sharing service in becoming a $20 billion a year grossing juggernaut.
Given their experience, Barnett, Harris, and Li are ideal components for Twitter’s Stories development project.
Conversely, the Chroma Labs team will benefit significantly from being acquired by Twitter. Last December, the startup’s signature app became available on Google’s Play Store and Apple’s App Store. Since that time, the program’s Android and iOS iterations have received user ratings of 4.3 and 4.8 stars, respectively.
Sadly, Chroma Labs’ initial offering did not find an audience commiserate with its quality. TechCrunch notes the company’s app has only received 37,000 downloads to date. But under Twitter’s umbrella, the startup’s staff will be able to get their products into the hands of over 126 million users.
Twitter’s Recent Innovations
As the global social media space has become increasingly consolidated, Twitter has sought to distinguish itself from its larger competitors.
As an example, last October, the corporation announced it would no longer host paid political advertising. CEO Jack Dorsey explained his company made the move to halt the spread of misinformation. In doing so, the firm boldly set itself apart from the world’s largest and most controversial social network.
Similarly, Twitter introduced a significant overhaul to its interaction system at this year’s Consumer Electronics Show. The platform will soon allow users the ability to dedicate the visibility level of their tweets. Moreover, the service will streamline the function of threaded posts and make user-generated Lists more discoverable.
Twitter has also recently made a series of strategic acquisitions to bolster its core competencies and portfolio.
Last April, the corporation purchased digital text highlighter maker Highly. Two months later, the firm snapped up a fake news detection company called Fabula AI. Last summer, the service acquired the team behind interactive storytelling app Lightwell. Most recently, the Silicon Valley giant added AI analytics concern Aiden to the fold in November 2019.