Disney Looking To Buy Twitter

Twitter could follow Star Wars, Pixar and Marvel, as the Walt Disney Company is apparently working with a financial adviser to make a possible bid for the social media company.

Bloomberg is reporting that Twitter has started a process to evaluate a potential sale to Disney, another bid is being considered by Salesforce.com, who is working with the Bank of America and other parties.

Following the news of Twitter being purchased by Disney, stock in Twitter rose by 2 percent, and it had previously rose by 21 percent on Friday when rumours of a potential buy out by SalesForce.com surfaced.  However Disney’s stock dropped by 2 percent on the news.

One of the main reasons Disney have been looking into purchasing the social media is to help further it’s video-streaming media strategy as more people cut the cord on traditional entertainment platforms and reach customers.  With Cable TV becoming less important, Disney have been investing in lots of technology-related media businesses, such as Hulu, Maker Studios, Vice and BAMTech.

Our Take:

It makes sense for Disney to try to keep ahead of its customers, having its own social media platform means they can offer their own content through it, without being restricted to deals with other platforms. With traditional media platforms like Cable TV becoming less relevant, they will want to keep up and if they can make a profit running their own social media platform, it’ll be easier and cheaper than starting a new one from scratch.

What do you think of Disney buying Twitter?