The rumor has been beaten by the afternoon with reports that Twitter is working on her own photo-sharing service to compete with the likes of Twitpic and Yfrog.
TechCrunch first reported the tip, citing several unnamed sources, last week. And now all things D appears to have confirmed the story as well, going so far as to say that the service will be announced this week. ATD story also quotes unnamed sources, but claims the announcement will be made in their own conference, D9, this week in Rancho Palos Verdes, California. \
Not come as too big of a surprise that these reports turn out to be true. He then asked the Twitter developers to halt construction of third-party clients, the company announced the acquisition of TweetDeck. Although it took months to finally confirmed the rumors too, so the rumors can be seen for some time before Twitter makes any official announcement.