Backed by Aussie entrepreneur Graeme Wood, We Are Hunted was developed in Brisbane and launched in 2009 as a tool allowing users to discover, play and share new music online.

A statement posted on its website on Friday confirmed it had been acquired by Twitter, though the terms of the deal were kept secret.

“While we are shutting down, we will continue to create services that will delight you, as part of the Twitter team,” the company said in a statement.

“There’s no question that Twitter and music go well together.

“Artists turn to Twitter first to connect with fans, and people share and discover new songs and albums every day. We can’t wait to share what we’ve been working on at Twitter.”

We Are Hunted was founded in 2007 by Stephen Phillips, Richard Slatter and Michael Doherty and recently relocated to San Francisco.

None of the trio immediately expanded on what the deal would mean for Twitter.

But it has increased rumours of a new Twitter app, potentially allowing users to discover popular new artists, listen to or even buy music.

US radio identity and American Idol host Ryan Seacrest recently revealed he’d been using a yet-to-be-released Twitter music app.

“Playing with @twitter’s new music app (yes it’s real!)…there’s a serious dance party happening at idol right now,” he tweeted.

“Shows what artists are trending, also has up-and-coming artists.”

Seacrest’s comments were retweeted by Twitter, all but confirming their veracity.

It comes as the major social networks all look to expand their services, offering users a wider, richer experience than merely connecting with friends.

Twitter has bought a number of other tech start-ups over the past year, including the video tool Vine, which allows users to shoot and post short clips.

Facebook has also been expanding its range of applications, including the photo site Instagram and the new Graph Search which allows users to search the Facebook site more thoroughly.

Image: We Are Hunted