Dis­ney ‘work­ing with ad­viser on Twit­ter bid’

China Daily (USA) - - BUSINESS - By BLOOMBERG

Walt Dis­ney Co is work­ing with a fi­nan­cial ad­viser to eval­u­ate a pos­si­ble bid for Twit­ter Inc, ac­cord­ing to peo­ple fa­mil­iar with the mat­ter.

Af­ter re­ceiv­ing in­ter­est in dis­cussing a deal, Twit­ter has started a process to eval­u­ate a po­ten­tial sale.

Sales­force.com Inc is also con­sid­er­ing a bid and is work­ing with Bank of Amer­ica on the process, ac­cord­ing to other peo­ple, who asked not to be named be­cause the mat­ter is pri­vate.

Rep­re­sen­ta­tives for Twit­ter and Dis­ney didn’t re­spond to re­quests for com­ment.

Spec­u­la­tion thatTwit­ter will be sold has been gath­er­ing steam in re­cent months, in­clud­ing last week’s news of Sales­force’s in­ter­est, given the so­cial-me­dia com­pany’s slump­ing stock and dif­fi­cul­ties in at­tract­ing new users and ad­ver­tis­ing rev­enue.

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

Twit­ter rose as much as 2.1 per­cent to $23.09 af­ter be­ing down ear­lier.

The stock soared 21 per­cent on Fri­day fol­low­ing reports of the talks with Sales­force. Dis­ney fell, drop­ping as­muchas 2 per­cent to $91.40.

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

Dis­ney Chair­man and Chief Ex­ec­u­tive Of­fi­cer Bob Iger has a rep­u­ta­tion as a strate­gic thinker with an ap­petite for bold bets, such as the $7.4 bil­lion ac­qui­si­tion of an­i­ma­tion stu­dio Pixar in 2006, just months af­ter he be­came CEO.

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