Twitter bought Vine and then shut it down — letting TikTok fill the vacuum

Vine, launched in 2013, was a short-form video app where users created 6-second looping clips. It was acquired by Twitter before launch and grew to over 200 million active users. Vine created a new format — short, looping, creative video — and a generation of internet celebrities.

But Twitter did not invest in Vine. The app was not monetized effectively, creator tools were limited, and Twitter's management was distracted by its own struggles. Key Vine creators left for Instagram and YouTube, where they could earn money. Twitter shut down Vine in January 2017.

In September 2017, TikTok launched globally, offering the same short-form video format that Vine had pioneered — but with better creator tools, a superior algorithm and aggressive monetization. TikTok became one of the most downloaded apps in history. The case illustrated how a company can acquire a category-defining product and then let it die through neglect, handing the category to a competitor.