While Salesforce and Google make for intuitive buyers given their tech backgrounds, Disney’s reported negotiations throw an interesting media component into the mix.
Advertisement
According to Kara Swisher, big media has plenty of incentive to acquire Twitter, to attract the younger demographics they are losing to new media companies like Facebook Inc (NASDAQ: FB). Twitter has never made a profit and sales growth has been slowing in recent quarters.
According to Reuters news sources, the company is not short of suitors.
The report says Disney may be eyeing Twitter as a chance to boost its video streaming strategy.
That being said, Twitter is expecting to sell themselves for a lot of money. Twitter is a platform that stands on the ideals of free speech, while Disney has had a mixed record with free speech issues in the past.
On Monday, Walt Disney Co.’s price of shares dipped 1.4 percent to close at $91.96.
“I think the traditional Disney shareholder would be really unsupportive of this acquisition”. Will Iger live up to his image as the strategic thinker with an appetite for bold bets and beat his competition?
With more and more TV content moving to mobile and digital services, Disney is probably also looking for ways to hedge its massive investments in traditional TV such as ESPN, and the real-time news service may look like a way to do that. Yet younger audiences have for years been abandoning cable for services like Snapchat, YouTube, and other forms of social and online media. But Iger invested in these services. They’re not the only ones interested, though; Salesforce.com Inc.is also considering a bid, and is working with Bank of America on the process.
The deal could be happening in the next few weeks or months. The company also has a 30 percent ownership stake in Hulu and 10 percent in Vice Media.
If Disney acquired Twitter, it would be the company’s largest acquisition since 1996 when it acquired Capital Cities/ABC Inc.
Advertisement
In Experts view, it is expected that if Disney buys Twitter then it will expand its operations and give their users quality entertainment in a unique way. From politicians to students, mostly everyone uses Twitter these days as a platform to connect and communicate quick points.
