Disney In Talks to Acquire Twitter
Disney has been confirmed as one of the several companies said to be evaluating the possibility of acquiring Twitter. So far other than Disney, reports have surfaced that Google, Salesforce, Microsoft and Verizon are other companies exploring offers for the social media company. Even Apple has been named as one of the possible suitors.
Twitter, which revolutionised social media, has been struggling in recent times to replicate the success of other social media brands like Facebook or Instagram. The company has seen poor growth, recording losses of $107 million in the second quarter of this year.
The company, which was listed in 2013, currently has a market capitalization of around $20 billion, making it possibly an expensive buy for Disney. In the past, Disney has acquired Pixar Animation Studios, Marvel Entertainment and Lucasfilm for a total of about $15.5 billion, providing it with a variety of assets such as the "The Avengers" franchise and characters like Darth Vader.
Disney's interest in Twitter lies probably due its extensive reach and its recent live streaming partnerships. Twitter has tied up with several companies including NFL for content partnership, that will allow it to stream content. Twitter uses BAMTech a media streaming company for its live streaming, a company Disney has a stake in.
Disney owns ESPN which has been struggling to maintain viewership. With the decline in cable subscription in U.S., Disney might be interested in using Twitter's platforms like its Periscope to reach new audiences. With Twitter's tools Disney can bring together viewers, experts and stars on a single medium.
Experts have pointed out there are several roadblocks to the deal. Among other things, Twitter's image is at odds with Disney's philosophy of maintaining a clean reputation. Controlling users posting racist, misogynist or other offensive material could prove tricky.
Offers from other companies for Twitter could well be still in consideration. The interest from Salesforce was a surprise for market observers, who have wondered whether it would make sense. The company's interest is likely due to Twitter's ability to be used as a medium for customer service and marketing campaigns. For Google it could be the opportunity to make a mark in social networking where it has repeatedly failed to gain traction.
