Twitter is particularly interested in Shots' user base, the source told CNBC, which includes more than 3 million users. Nearly two-thirds of those users are women under 24.
The report comes just after Twitter CFO Anthony Noto accidentally posted a tweet on Monday night hinting that an acquisition is in the works.
The tweet was meant to be a direct message, but Noto mistakenly posted the content as a public tweet instead.
Here's a screenshot of the tweet:
Pop star Justin Bieber is an investor in the Shots app and led a $1.1 million seed round of funding about one year ago.