Twitter Buys Gnip

Twitter announced that it has agreed to acquire its data-reseller partner Gnip in a bid to make its data more accessible to customers. Terms of the deal were not disclosed.

Update: In its second-quarter 10-Q filing (EDGAR) with the US SEC, Twitter revealed that the price for Gnip was $134.1 million:

In May 2014, the Company completed its acquisition of privately held Gnip, Inc. ("Gnip"), a leading provider of social data and analytics headquartered in Boulder, Colorado. The acquisition is expected to allow the Company to further enhance its data analytics capabilities. Under the terms of the acquisition, the Company agreed to pay $107.3 million in cash and issue a total of 0.6 million shares of common stock including shares of restricted stock subject to continued employment in consideration of all of the issued and outstanding shares of capital stock of Gnip. In addition, the Company agreed to issue up to 0.4 million shares of the Company's stock as a result of assumed Gnip equity awards held by individuals, who will continue to provide services to the Company. The fair value of total consideration of $134.1 million, including the earned portion of assumed stock options and other equity awards, was preliminarily allocated to the acquired tangible and intangible assets and assumed liabilities based on their estimated fair values at closing as follows: $23.2 million to developed technology, $9.3 million to customer relationships, $9.1 million to tangible assets acquired, $5.8 million to liabilities assumed, $6.4 million to deferred tax liability recorded, and the excess $104.7 million of the purchase price over the fair value of net assets acquired was recorded as goodwill. This goodwill is primarily attributable to the potential expansion and future development of the Company's data products, expected synergies arising from the acquisition and the value of acquired talent.

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