News 28 September 2016
Author: Alex Griffin

Is Disney about to buy Twitter?!

28 September 2016

There has been speculation for months in the tech and business worlds, that Twitter was preparing the processes of putting itself up for sale.

Now there’s some pretty serious rumours circling around from those in the field that an unexpected force is tabling a bid; the Walt Disney corporation.

The deal isn’t as bizarre as it actually seems. Jack Dorsey, the chief executive officer at Twitter, is also on the board at Disney, meaning an arrangement could potentially make sense.

It is believed that Disney’s investment is an attempt to counter their falling stock prices in a digital world where they perhaps haven’t kept up with technology as much as they’d like.

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

Twitter has a market value of $16 billion – that’s around £12 billion – meaning it would make it Disney’s largest acquisition since 1996.