Social Media

Edison Analyst Explains Why Disney Might Opt to Buy Twitter

With bids for Twitter possibly starting, judging from a Wall Street Journal report, as soon as this week, an analyst has explained why media giant Disney could ultimately clinch control of Twitter.

Salesforce and Google have been linked with possible bids for Twitter. However, as reported by City A.M., Edison Investment Research analyst Richard Windsor has cast doubt on their chances, after insisting: “To make a success of Twitter the buyer has to find a way to combine Twitter with its existing business to enable Twitter user numbers and revenue to begin growing again”.

He added: “This will be much harder than it sounds and we suspect that those who are more familiar with this industry are likely to have a look and then decline to bid.” Therefore, should Twitter be sold, “it is likely to go to a newcomer in this space such as a broadcaster or perhaps Disney if it can work out why it would need this asset.”

That could prove to be a very big “if”. Last week, Citigroup Inc. analysts outlined various reasons for Disney to forgo buying Twitter, including the difficulties the former could face in helping the social media company to overcome its various problems, including a disappointing rate of user growth.

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