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Disney Exploring Purchase of Twitter

Discussion in 'Disney Co News & Discussion' started by ford91exploder, Sep 26, 2016.

  1. ford91exploder

    ford91exploder Resident Curmudgeon

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    From Bloomberg

    http://www.bloomberg.com/news/artic...working-with-adviser-on-potential-twitter-bid

    The Walt Disney Co. is working with a financial adviser to evaluate a possible bid for Twitter Inc., according to people familiar with the matter.

    After receiving interest in discussing a deal, Twitter has started a process to evaluate a potential sale. Salesforce.com Inc. is also considering a bid, working with Bank of America on the process, according to other people, who declined to be named because the matter is private.

    Representatives for Twitter and Disney didn’t immediately respond to requests for comment.

    Exclusive insights in your inbox, from our technology reporters around the world.
    Get Fully Charged, from Bloomberg Technology.

    Speculation that Twitter will be sold has been gathering steam in recent months, including last week’s news of Salesforce’s interest, given the social media company’s slumping stock price and difficulties in attracting new users and advertising revenue. Disney, if it decides to make a bid, would be able to help the company further its video-streaming media strategy. Jack Dorsey, chief executive officer of Twitter, is also on the board of Disney.
    Twitter shares reversed previous declines on the news of interest from Disney, rising as much as 2 percent. The shares were trading at $22.83 at 2:02 p.m. in New York. The stock soared 21 percent Friday following reports of the talks with Salesforce. Disney shares fell, dropping as much as 2 percent to $91.40.

    “It’s a video distribution play,” said James Cakmak, an analyst at Monness Crespi Hardt & Co. “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.”

    Disney Chairman and Chief Executive Officer Bob Iger has developed a reputation as a strategic thinker with an appetite for bold bets such as the $7.4 billion acquisition of animation studio Pixar just months after he became CEO.

    With Disney’s largest business -- cable TV -- facing shrinking viewers and more competition from online video services, Iger has invested in technology-related media businesses, including Hulu, the video streaming service, digital media company Vice and BAMTech, which provides the platform for online video services such as HBO Now.

    Iger has sought to increase Disney’s new media expertise, adding Dorsey and Facebook Inc. Chief Operating Officer Sheryl Sandberg to the company’s board in recent years.

    (c) Bloomberg
     
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  2. Magenta Panther

    Magenta Panther Well-Known Member

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    I just started a thread about this in the Disney Company forum...

    As for this: Bob Iger has developed a reputation as a strategic thinker with an appetite for bold bets such as the $7.4 billion acquisition of animation studio Pixar just months after he became CEO.

    Oh, Bloomberg, you're such a suck-up. What was "bold" about the Pixar acquisition? Iger would have been an idiot if he hadn't tried to buy Pixar. Nearly losing that partnership helped kick Eisner out the door!
     
  3. ford91exploder

    ford91exploder Resident Curmudgeon Original Poster

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    Now that I posted the article - Disney is once again going after a tech company which is bleeding money which and which has no prospects of ever showing a profit, I can SEE Salesforce buying them and adding a messaging component to their offering but Disney (full disclosure I use Salesforce) nothing but Bob Iger's Ego at work here and now we have context to his comment 'Disney is now a Tech Company'.
     
  4. Magenta Panther

    Magenta Panther Well-Known Member

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    Now, see, even I knew Twitter was losing money. It's been in the news a lot. Is this the Iger strategy? Buying up stuff that's past its prime (and thus cheaply priced) in order to add big names to the company's holdings? Meanwhile he and his toadies cut corners at park attractions and raise prices all over the freaking place. God I can't stand the guy.
     
  5. DisneyJayL

    DisneyJayL Well-Known Member

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    Well, it was one of many that worked out exceedingly well. Eisner being ousted was the best thing to happen for Disney. Acquisitions of Marvel and Star Wars franchises bolstered Disney for years if not decades to come. Pixar was though a can't miss.
     
  6. Mouse Trap

    Mouse Trap Well-Known Member

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    It's simple. Three words:

    Streaming media play.

    It has nothing to do with what Twitter was or is known for now. It's all about what they will become.
     
  7. hakunamatata

    hakunamatata Love Me Some Fast Passes Premium Member

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    I dont have a thought one way or another on Disney buying Twitter but buying a struggling company like Twitter gets you access to knowledge and information that may be patented or copywrited or otherwise unavailable.
     
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  8. ford91exploder

    ford91exploder Resident Curmudgeon Original Poster

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    Problem is if Twitter wanted to become a streaming media play company they needed to start the move 2 years ago as that space is already overcrowded. Once again Disney is way late to the party.

    Twitter has the reach but no rational investor will fund the transition because there are too many strong players in this space already.

    Example have not used my twitter account in years and I pretty much only used it for stuff like mass transit updates for which it was incredibly useful.
     
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  9. ford91exploder

    ford91exploder Resident Curmudgeon Original Poster

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    Or you could buy a competitive player in the same space for a bit more upfront cash and have a platform which MAKES you money instead of costing you money.

    The market has figured out that there is no way to Monetize Twitter and well it's shares are reflecting that. Let's face it Twitter was a cool idea at the time allowing users to text across systems when that was HARD to do, But now ??? It's a solution to a problem which no longer exists.
     
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  10. HMF

    HMF Well-Known Member

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    As if they can't influence media enough already.
     
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  11. epcot82fan

    epcot82fan EPCOT Center Purist

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    This would just be Iger's ego at its worst.

    If we thought the budget cuts were bad after the Shanghai opening, just wait.
     
  12. Mouse Trap

    Mouse Trap Well-Known Member

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    The space is far from overcrowded. In fact online content streaming looks nothing like it did 5 years ago and will be entirely different in another 5 years.

    When "cable" as we know it migrates to online content streaming, then the fun begins. For now it's cat and mouse.

    300+ million monthly active users, 2.5 million of which tuned in for a Thursday night football game on Twitter. The potential is there if the RIGHT company can leverage it.

    Foresight my friends, foresight. An acquisition of Twitter byANY company is certainly not being done based on it's current business model.
     
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  13. hakunamatata

    hakunamatata Love Me Some Fast Passes Premium Member

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    Walt would have bought Twitter, he was a visionary.
     
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  14. unkadug

    unkadug Follower of "Saget"The Cult

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    I think that Walt would of had to have Twitter explained to him. And he probably would have laughed.
     
  15. unkadug

    unkadug Follower of "Saget"The Cult

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    A video in 140 seconds or less ?
     
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  16. wdrive

    wdrive Well-Known Member

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    If this happens it will be very interesting to see what happens to some of the Disney reporting/blogging Twitter accounts that Disney doesn't like.
     
  17. hakunamatata

    hakunamatata Love Me Some Fast Passes Premium Member

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    Nah. Walt would have been on top of all this trendy tech.
     
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  18. ford91exploder

    ford91exploder Resident Curmudgeon Original Poster

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    'Poofed' is the word I think you are looking for.
     
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  19. unkadug

    unkadug Follower of "Saget"The Cult

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    Possibly, but I'd like to think that Walt would still have been a trend setter, not somebody simply snapping up other people's creations. Although he was also known for acquiring good stories and re-purposing them to his standards. So maybe Walt would have bought Twitter. Who knows?
     
    Last edited: Sep 26, 2016
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  20. ford91exploder

    ford91exploder Resident Curmudgeon Original Poster

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    The only place Twitter is going is bankruptcy, It's current platform is speeding towards irrelevancy and there is no room in the market for a dozen streaming media companies perhaps 4-5 tops.
     
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