Date
21 January 2017
Twitter has seen its stock slump amid difficulties in attracting new users and advertising revenue, Photo: Reuters
Twitter has seen its stock slump amid difficulties in attracting new users and advertising revenue, Photo: Reuters

Disney, Microsoft among possible Twitter suitors

Walt Disney Co. and Microsoft Corp. join a list of potential suitors for Twitter Inc., which is reportedly in talks with a number of technology companies to sell itself.

The microblogging service has reportedly started talks with Google parent Alphabet Inc. and may receive a formal bid soon, according to Reuters.

Salesforce.com Inc. is also in pursuit, a source told the news agency.

Bloomberg reports that Salesforce is working with Bank of America on a potential bid.

Walt Disney is also working with a financial adviser to evaluate a possible bid for Twitter, Bloomberg said, citing people familiar with the matter.

Jack Dorsey, who returned to Twitter as chief executive more than a year ago, has been a part of Disney’s board since 2013.

Microsoft is also among the list of potential suitors, although Facebook Inc. is not likely to have an interest in the social network, CNBC said.

A sale could occur in the next 30 to 45 days, the financial news television channel said.

Speculation that Twitter will be sold has been gathering steam in recent months amid the company’s slumping stock and difficulties in attracting new users and advertising revenue, Bloomberg said.

A union with Twitter would give Disney much larger exposure to the ad dollars that are increasingly flowing to social media sites, according Paul Sweeney, Bloomberg Intelligence analyst.

“Twitter may give them an opportunity to communicate directly with their customers in an increasingly fragmented media landscape,” he said.

Disney, the owner of ABC and ESPN, could obtain a new online outlet for entertainment, sports and news. Dorsey is on the board of Disney.

Disney chairman and chief executive Bob Iger has long been a mentor of Dorsey, and Twitter’s executives are admirers of his strategy, Bloomberg said.

Earlier this year Iger spoke at a meeting of Twitter’s senior management.

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