Disney joins race to buy Twitter
The Walt Disney Co. is rumored to be eyeing Twitter for a possible acquisition, putting the Burbank entertainment giant in the company of tech firms such as Google and Salesforce that have previously been named as potential suitors.
Bloomberg first reported on Monday that Disney is considering a bid, noting that the company both has deep enough pockets to potentially acquire the $20 billion social network, and the incentive to snap up a widely-used distribution channel.
As more and more people abandon costly cable subscriptions and instead choose to consume entertainment on mobile devices via online streaming, firms such as Disney, whose vast media network is rooted in the cable business with channels such as ABC and ESPN, are scrambling to stay relevant.
Buying Twitter could give Disney, the biggest entertainment company in the world, a strong distribution platform for video content.
Earlier this year, Disney made a major investment to enhance its video distribution capabilities. In August, the company said it would pay $1 billion for a 33% stake in BAMTech, a video streaming company created by Major League Baseball. BAMTech has been tapped by Disney to create and distribute a new ESPN-branded, multi-sport subscription streaming service that will be sold directly to consumers.
BAMTech developed Major League Baseball’s popular streaming service and handles similar services for HBO and the National Hockey League, among others.
The acquisition was seen in part by analysts as a way for Disney to better secure its digital future – and address issues at ESPN, which has experienced a slowdown in subscriber growth. ESPN has lost 9 million subscribers since 2013, according to Nielsen data.
“Disney is considering a bid, noting that the company both has deep enough pockets to potentially acquire the $20 billion social network, and the incentive to snap up a widely-used distribution channel.”
what could possibly go wrong?
will we see the twitter birdie with mickey mouse ears?