Twitter, Widening Revenue Options, Buys Dutch Newsletter Startup Revue

Twitter acquired newsletter startup Revue in a bid to build additional revenue streams through subscription products.
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Microblogging site Twitter  (TWTR) - Get Report acquired newsletter startup Revue in a bid to build additional revenue streams through subscription products.

Terms weren't disclosed.

The San Francisco company said the service would bring subscription revenue to writers on the platform through paid newsletters.

Shares of Twitter at last check rose 6.5% to $50.96.

"Revue will accelerate our work to help people stay informed about their interests while giving all types of writers a way to monetize their audience," Twitter's product lead, Kayvon Beykpour, and vice president for publisher products, Mike Park, said in a company blog post.

Revue was founded in the Netherlands in 2015 and has six employees, according to media reports.

"We’re imagining a lot of ways to do this, from allowing people to sign up for newsletters from their favorite follows on Twitter, to new settings for writers to host conversations with their subscribers. It will all work seamlessly within Twitter," Beykpour and Park wrote.

"And for those looking to generate revenue, we’re creating a durable incentive model through paid newsletters," they added.

In July, Chief Executive Jack Dorsey told analysts that Twitter was in “very, very early phases of exploring” alternative revenue streams, including subscription products, The New York Times reported.

Twitter said Revue’s Pro features will be free for all accounts. The tech giant said it had pared the newsletter fee paid to Twitter to 5%, to let writers keep more of the revenue generated from subscriptions. It did not disclose further details.

On Jan. 8 Twitter permanently suspended former President Donald Trump’s account “due to the risk of further incitement of violence" after a mob of his supporters attacked the Capitol on Jan. 6.