Countless people hop online every single day and decide to share their thoughts, pictures, ideas, and more with the world on Twitter. It’s one of the largest social media sites in the entire world, and it connects one side of the globe to the other. Well, it now appears as if another giant is looking to take over that internet connectivity playground. The Walt Disney Company working with advisers to look at placing a possible bid for Twitter.
Yes, the mouse may be catching the bird.
— DisneyTVA News (@DisneyTVA) September 26, 2016
According to Bloomberg, Disney is indeed working with a financial adviser in order to put together a potential bid for Twitter. Some interest came Twitter’s way after there was some talk of a buyout or that the property was for sale, and they’re willing to listen to offers.
The Walt Disney Company wouldn’t be alone in their bid, though, and if they truly want the social media wonder, they’ll have to pay for it.
Other companies are joining in on the fight, and it looks as if they will need a lot more than just 140 characters to have their bid approved. Salesforce.com Inc. is working with Bank of America and has been considering a bid for Twitter, but nothing has been confirmed at this time.
The reps for both Disney and Twitter have not officially said anything about the possible bid either.
— Kevin J Donaldson (@KevinJDonaldson) September 26, 2016
Now, as far as the price for Twitter? That hasn’t been officially been revealed as of this writing, but Tech Crunch reports that it could go for as much as $30 billion, but it will likely go for much less than that. While Twitter’s stock is going up, it ended last week with a market cap of right below $13 billion.
After word broke that Salesforce may look to acquire Twitter, the market cap jumped up to $20 billion, and that is the price it could end up going for.
It’s not like Disney and Twitter don’t have huge reaches of their own, but a partnership of the two could take things in entirely different directions. Twitter has worked with some big name partners, such as the NFL, and that has had potential buyers realize the company’s true worth.
Disney has no shortage of big partners either, as they own ESPN and ABC, which automatically push their reach even further.
Early on Monday, Twitter’s stock had gone down four percent, according to CNBC, but that didn’t last long. From the point that news broke of Disney looking to acquire Twitter broke, the stock for the social media site saw shares up more than one percent.
That is almost double the 30-day average volume and easily made their worth even bigger.
Some believe that this potential bid for Twitter may not sit well with some people due to the company’s recent financial woes. James Cakmak, an analyst at Monness Crespi Hardt & Co., thinks that this acquisition is exactly what Disney needs.
“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 is obviously a huge name in the world. The company is a global media giant, and anyone who owns it is going to have a lot of power. The Walt Disney Company knows that having control of Twitter would easily up their presence online and around the world even more than it already is. Working on a potential bid is only the beginning, but this could get really interesting and pricey very soon.
[Featured Image by Bethany Clark/Getty Images]