Twitter’s Vine, the not-so-beloved service, has been killed by the parent company itself and the move has been dubbed as a ‘necessary’ change that the company carried out as a commitment to growing long-term shareholder value.
Initial rumours pointed to the possibility of a sale of the service – if not the entire company – but things didn’t work out and there have been no takers of the service. The announcement about Vine’s death came at a conference call were CEO Jack Dorsey revealed that they are culling Vine. Also, the company has laid off 9 per cent of its employees worldwide and will take $10 million to $20 million in charges as it lays off more than 300 of its 3,860 workers.
Vine, a mobile video app where people share short video clips that play in a loop, was launched in 2013 and while the service was novel and took off initially, stable growth was something that the company couldn’t achieve. Rivals like Facebook, Snapchat and Instagram have been biting off bits and pieces of Twitter as well as Vine and that’s one thing that has hampered the company’s growth.
Since the end of 2014, Twitter has lured 15 million monthly users to expand its audience to 313 million people. In that same period, Facebook brought in 319 million users, expanding its reach 1.7 billion people.
Twitter Inc posted a loss of $102.9 million, or 15 cents per share. Adjusted profit of 13 cents per share on revenue of $616 million. Advertising revenue rose 6 percent to $545 million, with mobile advertising making up 90 percent of the total ad revenue. Twitter said that it was not giving revenue forecasts for the fourth quarter or full year due to restructuring in its sales department.
“We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth,” CEO Jack Dorsey said in a company release.
Shares of Twitter, which have tumbled 27 percent in the past month as possible suitors have wandered away, rose 34 cents, or 2 percent, to $17.63 in afternoon trading on Thursday.
Twitter is placing a big bet on live video, and recently landed a high-profile deal to show National Football League games over 10 Thursdays. It wants to be the go-to place to share opinions in real time.
On Thursday, Twitter said that average monthly active users climbed 3 per cent to 317 million during its third quarter, while average daily active usage increased 7 percent.