Subscribe to Entrepreneur for $5

Twitter Buys Machine-Learning Firm Magic Pony to Boost Image Content

This story originally appeared on Reuters

Twitter Inc. said on Monday it acquired London-based Magic Pony Technology, a machine-learning startup that specializes in working with images, to deliver better video and picture content.

Reuters | Dado Ruvic | Illustration

Twitter did not disclose the financial terms of the deal. Technology news website TechCrunch cited sources saying the deal was worth $150 million.

"Magic Pony's technology ... will be used to enhance our strength in live and video (imagery) and opens up a whole lot of exciting creative possibilities for Twitter," Twitter Chief Executive Jack Dorsey wrote in a blog post.

Magic Pony Technology, which has been around for 18 months, will join Cortex, Twitter's team of engineers, data scientists, and machine learning researchers, Twitter said.

The acquisition is Twitter's third in the machine-learning space in three years. It acquired Whetlab in 2014 and Madbits in 2015.

Twitter shares were up 2.2 percent at $16.46 in late afternoon trading on the New York Stock Exchange.

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Savio D'Souza)

Entrepreneur Editors' Picks