Twitter to Acquire Atebits' Tweetie Software for Mac & iPhone

In a move that is sure to rattle its developers, Twitter has agreed to acquire Atebits, the start-up that makes the Tweetie apps for using Twitter on Mac computers and iPhones. The acquisition price was not disclosed.

This marks a new strategy, as Twitter makes its first foray into providing a mobile and desktop client itself. Friday, April 9, 2009, Twitter also announced that it helped Research in Motion build an “official” Twitter app for BlackBerrys.

In the past, Twitter has focused on its Web site, twitter.com, and left the development of Twitter mobile clients up to start-ups like Tweetie, Twitterrific and UberTwitter.

Atebits was founded by Loren Brichter, a software developer who used to work for Apple on the iPhone. It sells for $2.99, is the most popular mobile Twitter client and won an Apple Design Award last year. Twitter will offer it for free and rename it Twitter for iPhone.



On the Mac computer version, Tweetie runs ads from Fusion Ads, an ad network. Twitter has said that it will consider some sort of advertising in the near future. Can anyone say "iAd"? Apple announced that they would be developing their own ad platform for the ipod Touch, iPhone and iPad devices.

iAd is a breakthrough mobile advertising platform from Apple. With it, apps can feature rich media ads that combine the emotion of TV with the interactivity of the web. For developers, it means a new, easy-to-implement source of revenue. For advertisers, it creates a new media outlet that offers consumers highly targeted information.



Looks like Twitter is positioning itself to bank from this upcoming technology. Give the app away for free and make money on the advertising. They'll make more money giving it ways free than they would charging any price for the app.

Mr. Brichter wrote this on his blog at http://news.atebits.com

"Once upon a time I wanted a better Twitter app for my iPhone, so I wrote one. My goal was to make something simple, beautiful, and intuitive. It’s been a wild ride since 1.0, and over the last year and a half Tweetie has gone from a no-name app from a little known software company to an app hailed as one of the best mobile experiences around. It’s been featured in TIME and Wired, won the Apple Design Award, and I’ve had the privilege of working with the folks at Twitter from the outside as their service evolved.

Now I’ll be working with them on the inside. I’m happy to say that as of today Twitter is the proud owner of Tweetie - and I’m joining their mobile team and starting work on turning Tweetie.app into Twitter.app, for iPhone and iPad.

Some amazing stuff will soon be possible, both in terms of simplifying the Twitter experience and in allowing people to use Twitter any place they might be. I’m really looking forward to the next generation of mobile clients, and hopefully the next time you hear from me it’ll be on the Twitter blog!"

Here is what the Twitter Blog states

"Twitter has been growing by leaps and bounds around the world. Mobile has always been a focus for us—starting with SMS which lead to the 140 character limit. People everywhere should be able to access Twitter without friction or confusion. Careful analysis of the Twitter user experience in the iTunes AppStore revealed massive room for improvement. People are looking for an app from Twitter, and they're not finding one. So, they get confused and give up. It's important that we optimize for user benefit and create an awesome experience.

We're thrilled to announce that we've entered into an agreement with Atebits (aka Loren Brichter) to acquire Tweetie, a leading iPhone Twitter client. Tweetie will be renamed Twitter for iPhone and made free (currently $2.99) in the iTunes AppStore in the coming weeks. Loren will become a key member of our mobile team that is already having huge impact with device makers and service providers around the world. Loren's work won the 2009 Apple Design Award and we will eventually launch Twitter for iPad with his help.

As we work to provide the best possible Twitter experience on all of the major mobile platforms, momentum will increase dramatically. Millions more active, engaged, mobile users means more opportunities for all of us. Developers, services, and publishers will be able to leverage the Twitter iPhone and iPad applications to create additional innovative tools and integrations for users. We'll have more specific information on this once Loren is officially on board. In the meantime, please join us in welcoming Loren to the Twitter team. "