The world of business might see an awkward pairing soon enough. One that will make two companies that seem to have very different values sit at the same table and negotiate. One of the two companies in question is Disney, and the other is Twitter.
Rumors about a Twitter acquisition have been circulating for a while now. The latest name on the list of companies interested in buying Twitter is Disney. The two companies might seem very different, but when it comes to acquisitions, stranger things have happened.
Two Different Worlds
The two worlds might seem at odds with one another. Disney is a giant in the world of entertainment. It’s also notorious for exercising very strict control over the content of its cultural products. Twitter on the other hand is a small tech company. Twitter has such a strong commitment to free speech that it has gained a lot of credit from that. It is a trusted online source for news. However, it is at the same time a place where harassment occurs. Whether the two companies could make the deal happen remains to be seen. Right now, a possible deal between Disney and Twitter is just a matter of speculation.
It was first reported on Monday that entertainment company, Disney is taking into consideration making a bid on Twitter. There is a growing list of companies that are interested in Twitter, but Disney is the first one from the entertainment industry to express an interest. The list of companies that are trying to acquire Twitter includes Microsoft Corp., Salesforce Inc. and Google Inc.
While it makes sense for another, larger tech company to want to buy Twitter, Disney stands out somewhat on the list. It’s possible that the company has been the target of these large tech companies for a while now. But it’s something new for Disney to take an interest in the company.
Disney is a media company, not part of the tech sector. But it has the money to acquire Twitter, that is currently valued at $20 billion. Also, it has plenty of motive to want to buy a social network that serves as a digital distribution channel. In a way, a media company buying Twitter actually makes sense.
Twitter Is in Good Shape
A large company like Disney buying Twitter would be a good thing for the social network. The company has in recent times struggled to grow. It has been difficult for the company to move from just being a social network for posting 140 character comments. Another concern for the company has been reaching revenue goals.
Twitter did try to expand its business. But attempts to go into e-commerce as well as other ventures flopped. However, since co-founder Dorsey came back to the company and assumed the position of CEO, Twitter has focused its business more on media.
The social network has started hosting live streams. Photos and videos became more important to Twitter. Also, last year it launched “Moments”, a page of curated content that aimed at keeping audiences engaged.
Since the 22nd of September when rumors of an acquisition started to circulate, stock in Twitter has gone up by 25%. On Monday it closed at $23.37, up more than 3 percent.
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