Why Would Disney Want Twitter? Here Are A Couple Of Reasons

Shares of Twitter Inc TWTR spiked 20 percent on Friday, driven by yet another rumor about the company being in takeover talks.

The stock continued to surge on Monday, after Bloomberg reported Walt Disney Co DIS is interested in the company and evaluating a possible bid with a financial advisor.

But, why would Disney want Twitter?

Related Link: Should Disney Acquire Twitter?

Albert Fried's Tullo said the deal “makes no sense.” However, he added, “if you think streaming video is potentially disruptive to live sports then there is a strategic case to be made.”

ReCode shared its own take earlier this month. According to Kara Swisher, big media has plenty of incentive to acquire Twitter, to attract the younger demographics they are losing to new media companies like Facebook Inc FB.

“While Disney has a taste for digital properties (Hello, Vice!) and while Dorsey is on the board of Disney, so is Facebook’s Sandberg,” Swisher stated.

On the other hand, Kurt Wagner argued an $18 billion acquisition would be too expensive for Disney.

“Media organizations already get most of the benefits of Twitter’s product — free content distribution— without the headache that comes with running it. Plus, Twitter is hungry for any and all high-quality video content, which means rights holders like Turner (Time Warner) can easily ink deals with Twitter if need be. No need to open the checkbook,” he said.

Shares closed at $23.38, up 3.3 percent.

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Posted In: NewsRumorsM&ATechalbert friedKara SwisherReCodeTullo
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