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Twitter Inc (NYSE:TWTR) Makes Its First Investment In Hardware

Twitter Inc (NYSE:TWTR)

Twitter Inc has made an unexpected investment in Muzik, which is a ‘connected headphone’ firm. The deal is not an Apple-Beats sized. Muzik informed that it raised $18m over a couple of years, and Twitter is one of its several investors, says a report from Re/code.

Twitter makes first investment in hardware

Twitter Inc has been making investment in several firms via its Venture arm, but this is first investment from the micro-blogging firm in hardware. The wireless headphones from Muzik allow users to control the tunes they are listening to by swiping buttons on the outside of the device. They can also share clips of the songs they are listening to onto social networks by using of these buttons.

Twitter Inc (NYSE:TWTR)

The deal suggests that eventually Twitter would directly integrate into the headphones. There are good chances that Muzik may display some its items alongside Twitter’s CES display in Las Vegas this week

Muzik is close to releasing its first set of headphones that it made with an intent of competing with the high-end/high-status brands like Apple’s Beats. The headphones have been priced at $299, and are expected to start shipping in May, the report says. Later in the year, the firm might release an in-ear model priced at $199. Executives of both Twitter and Muzik say the firms technology will migrate into other products in the future.

Monetizing passive users

Twitter may have plans to monetize its investment in Muzik at some point in future, but now the firm is working on monetizing its 500 million passive users who access tweets without logging into the site. Last month, the firm announced to enable advertisers to target such users.

Twitter is rolling out this functionality among select marketers in the U.S., the U.K. Japan and Australia, and hopefully more regions will be added in the future. Now, it will be possible for the advertisers to reach out to all those people who make use of Google search links for tweeting.

It is a win-win initiative for both. Marketers will benefit from a much bigger audience while Twitter Inc gets an opportunity to generate higher revenue from the users that have been neglected till now. The impact that this new revenue stream will have on Twitter’s total sales will be visible only after the feature is put to use by the marketers.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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