Disney Evaluating Bid for Twitter (Report)
Other potential bidders for the social networking platform include Salesforce, Google and Verizon.
Disney is evaluating making a bid for Twitter, according to a report from Bloomberg.
The brief, which cites sources familiar with the matter, says that Disney is working with a financial adviser as it explores a potential acquisition. Bloomberg also reported that Salesforce has tapped Bank of America as it considers a bid.
With its lagging stock price due to slow user growth, Twitter has been subject to acquisition speculation for some time. Last week, new reports emerged that the company was exploring a sale after receiving inbound interest from companies including Salesforce, Google and Verizon. The reports sent Twitter's stock soaring on Friday, closing up 21 percent to $22.62
Disney and Twitter already have some shared history. Twitter CEO Jack Dorsey currently sits on Disney's board. The media giant's ABC News recently partnered with Twitter to live-stream its coverage of Monday night's presidential debate between Hillary Clinton and Donald Trump. A deal could further Twitter's aggressive efforts to move into the live video space.
During his 16 years as CEO of Disney, Bob Iger has had a penchant for digital acquisitions and investments. The company acquired social game developer Playdom in 2010 in a deal ultimately valued at $763 million. In 2014, it purchased Maker Studios for $500 million plus performance incentives. Earlier this year, Disney announced that it had acquired a minority stake in BamTech, the streaming video provider created out of MLB Advanced Media. The company also invested $400 million into Vice Media last year.
But Disney's push into digital has been rocky. The company in May announced that it was closing its Infinity franchise, resulting in the loss of up to 300 jobs. Earlier this month, it effectively shuttered Playdom with the shutdown of its Marvel: Avengers Alliance properties, part of layoffs across its Disney Interactive and Consumer Products division. Maker Studios, meanwhile, has lost several of its top brass and recently went through a round of layoffs.
Twitter shares are trading up less than 1 percent during midday trading. Disney shares are down about 2 percent.
Representatives for Disney did not immediately respond to a request for comment.
2:50 p.m. Updated to correct that Bloomberg reported that Salesforce has retained Bank of America for its possible bid.