In a blog post mentioning the acquisition of Tweetie CEO Evan Williams said

“ People are looking for an app from Twitter, and they’re not finding one. So, they get confused and give up. It’s important that we optimize for user benefit and create an awesome experience.”
Twitter had reached agreement with Atebits to acquire Twitte, a leading Twitter iPhone apps. Tweetie’s creator, Loren Brichter, will be joining the Twitter team. Tweetie will be renamed “Twitter for iPhone” and be made free in the few weeks (since it currently costs $2.99).
In the blog post Williams also said that in the near future Twitter for iPad will also be available in near future.
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