Will Disney Make Twitter the Happiest Social Media on Earth?

By

Social media platforms are a place where we can go to express ourselves—we can post pictures on Facebook and Instagram, share our thoughts on Twitter, and make funny faces for our friends on Snapchat. It’s a lot of fun, but we often forget that social media platforms are businesses as well. That fact is becoming abundantly clear for Twitter, who has been having a rough time attracting new users, thus resulting in slumping stock prices. To get back on their feet, Twitter is reportedly seeking an acquisition deal that would value them at $30 billion. There are a few contenders already, and Disney is contemplating throwing its hat into the ring as well.

According to Bloomberg, The Walt Disney Company is working with a financial adviser to evaluate a possible bid for Twitter, Inc. 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.

Twitter’s decision to be acquired is a result of their recent struggle to boost its user base. Other social media platforms like Facebook and Snapchat are consistently gaining in popularity, which ultimately means their cash flow is soaring. Twitter isn’t having this experience, making them fall behind significantly. Their revenue was only up 20 percent during the second quarter, which is the smallest percentage gain since going public. Meanwhile, in the same quarter they reported 313 million monthly active users, which was only a 3 percent increase. Needless to say, they’re having trouble competing, which is where a potential buyer comes in.

                   Image via Bigstock

If Disney makes a bid, it may be able to help Twitter turn things around by furthering its video-streaming media strategy. In fact, Twitter shares are already seeing a bit of a boost just because of Disney’s interest, rising as much as 2 percent.

Why would Disney want to get involved with social media, though? James Cakmak, an analyst at Monness Crespi Hardt & Co., provided some insight by saying, “It’s a video distribution play…What Disney has to think about is what is its place in a post cord-cutting world. They are investing in technology for distribution – and this would give them the platform to reach audiences around the world.”

This makes sense, as Disney’s largest business—cable TV—has been facing shrinking viewers thanks to online video services. Disney’s Chairman and CEO Bob Iger is known for making strategic decisions, which is why he has started to invest in technology-related media businesses, including Hulu, Vice and BAMTech. If things go according to plan, Iger will be adding Twitter to his list of acquisitions, and Twitter will be the happiest social media platform on Earth.




Edited by Maurice Nagle
SHARE THIS ARTICLE
Related Articles

Salesforce to Acquire Slack in Biggest Benioff Acquisition to Date

By: Erik Linask    12/1/2020

Salesforce to buy collaboration firm Slack to create integrated CRM-communications platform.

Read More

Gaming Hardware Worth Checking Out in 2020

By: Special Guest    12/1/2020

With a global pandemic and lockdown meaning, we are spending more time at home than ever before 2020 certainly is the year for gaming. This has neatly…

Read More

What Happened to Bitcoin as a Mainstream Usurper?

By: Special Guest    12/1/2020

Ever since Bitcoin drove the cryptocurrency movement nearly a decade ago, the talk as been about blockchain usurping fiat currencies in day-to-day lif…

Read More

Can Apple's M1 MacBook's Live Up to the Hype?

By: Special Guest    12/1/2020

Apple is now officially in the ARM computing realm following the release of its next generation MacBook's and new M1 CPU. One of the most important ch…

Read More

NMBRS® MAKES CLOUD INTEGRATION CHILD'S PLAY

By: Special Guest    12/1/2020

Organizations prefer to choose the best cloud applications for their operational processes. For a good conduct of business the integration of all the …

Read More