Is this the third or fourth dramatic development in the Twitpic closure? It's beginning to get a little ridiculous. Every week it seems like the story changes. They're closing, they're not, they're acquired, they're not, and now they are again.
The announcement says that they will "give" the domain and archive to Twitter - that's not really the kind of arrangement you traditionally associate with an acquisition. In fact if anything, "give us the domain" is more commonly associated with the outcome of trademark infringement proceedings. (Although clearly it's unlikely that those events occurred in this particular case, as the previous spat with Twitter didn't seem to go that far.)
While I feel for these guys, I have to imagine they'll go on to greener pastures.