Twitter is under the threat of looking extremely foolish if they chose to give up control of Vine. They would rather see is it ending than sell it off so that their audience can still enjoy the benefits of this entertainment network. We can see a lot people losing from this. But the real question is who the winner is. Once the news broke we had to come up with reasons as to why this was being done and what could be done differently. We have tried to elaborate on those reasons.
Let us consider first that Twitter wanted save all the previous Vines in order to preserve the tweets and embeds. If it was owned by another entity, the archives might be deleted or get lost in the transfer. Would they want years and years of data to get lost in transit just like that? Something they have been working on for so long.
Twitter is associated with Vines. If Vines in any case made a wrong business decision and it led to a catastrophic outcome then people would find a linkage with Twitter. This would mean deterioration of Twitter’s brand value. Maybe this is the better way to deal with the situation. It takes years to build a brand image and seconds for it to get tarnished. A firm, whether a dominant player or follower in the market, is unaware of how Twitter has been conducting business. One wrong decision would make the audience question Twitter’s decisions rather than the new entity in the picture.
Traffic to Vine has fallen further at the end. It would have been expensive for Twitter to keep it afloat with it not generating as much revenue as required. Twitter would be hemorrhaging soon enough. Is it really a good idea to keep betting on a losing horse? That same way, it is smarter to know when to call quits. That can save you a lot of time and effort that you could otherwise spend productively.
Another point in consideration is selling off Vine for a diminished value might mean to some that Twitter is desperate for some “cash”. Maybe they are just trying to cut their losses. Redirect their resources to another venture that could become something even bigger than Vine. Let us all hope.
Vine’s account system, the system is known to be hinged on Twitter. In the case of Vine being sold, their competitors would have a clear idea of Twitter’s main user graph and imitate it to develop a product that could compete with it. Why would they voluntarily divulge their trade secrets or business model? And help another firm stand up against them.
If another organization came in and did a better job for Vine and enhanced performance, and then it would show a lacking on Twitter’s part. What were they able to do that Twitter couldn’t? This question would roam the minds of many causing doubts and misconceptions a thousand.