The San Francisco-based social media company said Oct. 27 that it would shut down the Vine app. Vine allows users to share short 6-second videos, but its popularity has fallen off recently amid competition from Facebook's (FB) video efforts and privately-owned social media app Snapchat.
Despite Vine's waning fame, Twitter received multiple bids for the app after announcing that it would be shuttered in the coming months, including several from various Asian companies. The offers may not generate significant revenue, however, as a few are below $10 million, sources said.
Still, Vine has been costing Twitter about $10 million monthly for infrastructure and employees, sources told the New York Times. Getting rid of the asset could help Twitter as it looks to trim costs.
The company announced last month that it would be cutting 9% of its workforce as part of its restructuring efforts. Twitter had also been looking to sell itself in recent months, but failed to find a buyer despite reported interest from companies such as Walt Disney (DIS) and Alphabet's (GOOGL) Google unit, in addition to Salesforce (CRM) .
Although Twitter has struggled to keep costs in line, the company topped analysts' estimates for third quarter results on Oct. 27, with adjusted earnings of 13 cents per share on revenue of $616.0 million. Wall Street was looking for adjusted earnings of 9 cents per share on revenue of $605.8 million.
Shares of Twitter were flat in after-hours trading on Monday after rising 2.2% to $18.41 during the day's session.