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Why Is Twitter Investing in Headphone Maker Muzik?

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Jan. 8 2016, Updated 9:07 a.m. ET

Muzik raised $18 million

In our previous articles, we discussed how Twitter is struggling to keep its users engaged with its website. In its attempt to increase active users, Twitter’s venture capital arm is investing in Muzik, a startup that makes wireless headphones.

Twitter has invested in several startups with its venture capital arm, but this is the first time that Twitter has invested in a hardware firm. Either way, the size of the investment is not like the Apple–Beats deal. According to Muzik, it has raised around $18 million, and Twitter is among several investors interested in integrating Muzik with their core business.

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Twitter to engage music lovers

Muzik makes wireless headphones that allow users to control the device through buttons embedded on the device. They can use the same button to share the songs they are listening to from any social media website such as Facebook (FB) and Twitter (TWTR). Twitter is expecting it can attract some music fans from this deal by allowing them to share music more easily. According to Twitter, music is the most discussed topic on Twitter feeds, and some of its most-followed users are musicians.

A few analysts raised the question of why someone would need a headphone to share music to social media websites when that music can be shared easily through services—such as Spotify and Apple Music—using mobile devices that many people tend to use while listening to music.

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