My hunch as an outsider is that Smyte wasn't GDPR compliant. Their leadership knew it, they knew they couldn't easily become so (for instance, they may have been using Kafka in a way where compaction wouldn't help, and didn't want to build an encryption-based monstrosity [0]), realized that they wouldn't increase in value as a business due to that risk, took an acquihire for cheap in order to give their employees a decent landing and give a return to their investors, and couldn't tell anyone about these plans in advance because it might jeopardize the transaction.
EDIT: They were indeed using Kafka per [1], and due to the strict latency requirements on their business, that may have ruled out the type of encryption scheme in [0].
[0] https://danlebrero.com/2018/04/11/kafka-gdpr-event-sourcing/
GDPR does seem like the most likely culprit here, if they've been planning an aquihire for a while it wouldn't have been worth implementing GDPR and Twitter likely made it a condition that the service is shut down before the acquisition completes
I'm quite surprised none of the cloud vendors were interested/could offer more than Twitter for this team though, seems like a logical service to add.