Twitter has recently been making live video a central part of its platform, specifically when it comes to sports. While Twitter may have had a stagnant user base over past few quarters, it has had a solid ad revenue earning. Meanwhile, ESPN owns the rights to air the Monday Night Football matches.
Nowadays, a rumor is circulating in the corporate environment that Twitter's current owner are going to sell their social website to a prospective investor.
Another fact is that the CEO of Twitter, Jack Dorsey, is now a member of the board at Disney, and this seems to make it easier to get potential access to Twitter.
Last month, eMarketer said Twitter's share of USA social network users will decline to 28.1 per cent this year from 28.4 per cent in 2015, and continue to drop through 2020 as it loses users to Snap, Instagram, and other messaging apps. If Disney purchases Twitter, it would significantly boost the company's video-streaming media strategy. Just last week, various reports stated Google, Salesforce.com, and Verizon were all interested in potentially placing offers. Salesforce had lost out to Microsoft in the bid for LinkedIn.
Twitter shares reversed previous declines on the news of interest from Disney, rising as much as 2 percent. The company had only $5.2 billion in cash and short-term investments as of the most recent quarter, and Twitter stock now has a market cap of almost $20 million.
The potential impact of a Disney-run Twitter remains to be seen. The last time the company ended trading this high was all the way back in December of 2015.
According to the experts, talk of a possible acquisition is caused by the company's weak financial performance due to a lack of an effective monetization model.