From Bloomberg (even they see it as a legacy move for Bob):
http://www.bloomberg.com/news/artic...rger-with-twitter-poses-risks-for-iger-legacy
Iger’s Legacy at Stake in Possible Disney Deal for Twitter
Bob Iger is looking at one more chance to reset the course of Walt Disney Co. with a big deal.
The 65-year-old chairman and chief executive officer of Walt Disney Co. is scheduled to retire in June 2018. He’s already achieved a number of milestones, including Disney’s revival of the “Star Wars” film series and the opening in June of the company’s $5.5 billion Shanghai resort. But one issue bedevils him and most other media executives: how to transition to a world where mobile devices, not TV screens, dominate news and entertainment.
The question underscores Disney’s interest in Twitter Inc. The Burbank, California-based company has hired an investment bank to advise on a possible Twitter merger, Bloomberg News reported Monday. A deal would unite the world’s largest entertainment company, the home of ABC, ESPN and Mickey Mouse, with the technology pioneer that created the 140-character tweet. It could let Iger leave knowing he’s given Disney a big presence in digital media and advertising.
“That would be his final stamp on Disney,” said
Tim Galpin, a professor of management at Colorado State University and co-author of “The Complete Guide to Mergers and Acquisitions.” “If he could get that behind him, he could walk off with a final major success story.”
Twitter, whose co-founder and CEO Jack Dorsey sits on the Disney board, has already been dipping its toes in live sports, airing National Football League’s night games. That’s a business that Disney, the parent of the leading sports TV network ESPN, knows well and that clearly intrigues Iger.
Watching on Twitter
“I checked it out, as did a lot of people, and I thought it was quite a good experience,” Iger said on Sept. 21 at a Goldman Sachs conference. “They did a good job.”
Disney could use Twitter’s platform of 313 million users to deliver real-time news and sports from divisions such as ESPN and ABC News, notes Brian Wieser, an analyst with Pivotal Research Group who follows both companies. The risk is Twitter could alienate other networks like CNN and Fox News if it becomes part of Disney, he said.
An acquisition of Twitter by Disney is possible from a financial standpoint, according to Bloomberg Intelligence analyst Stephen Flynn.
“They have a very strong balance sheet,” Flynn said. “They’re behemoths in the communications sector, and their debt is not the size of the other large players.”
Disney, which had about $15.1 billion in long-term debt and more than $5 billion in cash as of the last quarter, may be able to issue another $12 billion of debt securities and keep its current credit rating, Flynn said. The company carries an A2 rating from Moody’s Investors Service, similar to an A grade from S&P Global Ratings, the sixth-highest rank.