Report: Disney Kicking The Tires On Twitter
September 26, 2016 at 12:35 PM (PT)
Is TWITTER being fitted for a pair of Mouse ears?
According to BLOOMBERG, the WALT DISNEY CO. is working with a financial adviser to prepare a possible bid for TWITTER, which is also evaluating a potential sale. SALESFORCE.COM, INC. is also reportedly considering a bid for the social media company.
Given TWITTER's faltering stock price, declining advertising revenue and inability to attract new users, news of its possible sale has come as no surprise. TWITTER CEO JACK DORSEY also sits on DISNEY's board.
TWITTER shares reversed those declines on the news of DISNEY's interest, rising as much as 2%, trading at $22.83 this afternoon. Most observers view DISNEY's tire-kicking as "a video distribution play... their place in a post cord-cutting world."
DISNEY Chairman/CEO BOB IGER is known as a tech-friendly strategic thinker. With cable TV facing decline audiences and more competition from online video services,IGER has invested in the likes of HULU, VICE and BAMTECH, which provides the platform for online video services such as HBO NOW.
DORSEY and FACEBOOK COO SHERYL SANDBERG both sit on DISNEY's board.