Twitter is investing in the content creator ecosystem with Niche, a New York startup that connects Vine and Twitter stars with advertisers.
"It's important to provide a wide variety of tools for content creators to distribute and ultimately manage all of their content," director of product management Baljeet Singh wrote in a blog post Wednesday announcing the acquisition. Terms of the deal were not disclosed, but reports peg the deal at more than $30 million.
-- Twitter (@twitter) February 11, 2015
Niche was founded in 2013 to work with the growing number of content creators on Twitter-owned Vine and other platforms, such as Instagram. The WME-backed company, which also counts Lerer Ventures, SV Angel and Advancit Capital as investors, pairs these socially savvy stars with brands looking to reach targeted demographics. Campaigns can range from a few hundred dollars to tens of thousands depending on the creator and the brand.
As of last summer, Niche was working with 3,000 social media accounts that reached 500 million followers. Today the company has doubled in growth to more than 6,000 accounts and 100 brand advertisers.
With the acquisition of Niche, Twitter gains entry into a sponsorship-based revenue stream to which it didn't previously have access.
"Twitter has become a vital partner for Niche during the past year, especially as it relates to our relationship with Vine and the creative community there," Niche founders Rob Fishman and Darren Lachtman wrote in a blog post. "No matter the project, Twitter is a common denominator: a gateway to the social web's most compelling content and creators."
This article was first published by The Hollywood Reporter.