In addition to recent reports that Salesforce and Google are interested in possibly buying the real-time news service, Disney is now said to be considering an acquisition bid as well. Despite building a solid advertising business, investors have been wary of the company's growth issues; growth essentially came to a standstill previous year, and has only been slowly recovering in recent months.
Rumors first began circulating recently following the news that Salesforce and Alphabet were reportedly in talks to bid on the company.
On Closing Bell, CNBC's David Faber reported that Twitter is moving closer to a formal sale process for the company, according to sources familiar with the matter. Their biggest business however, remains cable TV properties ESPN and ABC. Along with Twitter's Dorsey, Facebook Chief Operating Officer Sheryl Sandberg is on Disney's board.
With the $26.2 billion purchase of LinkedIn by Microsoft Corporation, companies like Twitter got a new conjecture sparked.
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.
Disney obviously already has substantial distribution technology and reach, especially after their acquisition of a third of BAM Tech (with the opportunity to buy more), but Twitter might give them further opportunities there.
Rumours of Twitter on sale emerged soon after the micro-blogging company shut engineering operation unit in Bengaluru, India, as it posted disappointing sales figures and mixed results over the last few quarters.
What the Twitter acquisition would also mean for Disney, is a stronger ad revenue.
In addition to this, Disney is also likely to help Twitter grow in the right direction with the cash flow. TechCrunch added that Microsoft and Verizon were also looking at placing a bid on the company.