Twitter Absorbs Tweetdeck For $40m

Twitter has confirmed the acquisition of UK-based company Tweetdeck, the popular application that allows users to manage their Twitter feeds and related tweets, for a mix of cash and shares worth north of $40 million.

Iain Dodsworth of Tweetdeck confirmed on the company blog that it had been acquired and that the deal was completed on Tuesday.

He pointed out that Twitter acquired Tweetdeck because the latter is the preferred Twitter tool for "brands, influencers, the highly active and anyone that just needs 'more power'." And it seems that $40 million might not be a lot to pay to get access to that influence.

News of the acquisition of Tweetdeck by Twitter had surfaced at the beginning of the month when Michael Arrington of Techcrunch broke the news and noted that another rival, Ubermedia, had put up to $30 million on the table to lure Tweetdeck before Twitter swooped in what has been described as a "defensive" deal.

Twitter has acquired a number of companies over the last three years with Summize (which is now Twitter Search) and Tweetie being two of the more important acquisitions.

The microblogging company has been itself at the center of intense speculation after the Wall Street Journal reported that the company had been in "low level talks" for an outright acquisition with a valuation of up to $10 billion.