AT&T Inc. (T) has proven the adage ‘Content is King’ with its $85 billion bid for Time Warner Inc (TWX). The $226 billion media distributor has access to over 100 million subscribers across wireless, internet, and video but needs an endless array of programming to fill that pipeline.
Time Warner is the world’s third-largest media conglomerate, owning a library of movie rights along with content-creating behemoths like HBO and CNN.
But content doesn’t just mean original video programming. It’s any information created regularly that brings potential customers back to the distribution channel.
That wider definition makes social media networks the most sought-after content creators available. Social media content is user generated so it costs nothing to produce. It’s also interactive and personal, two ideas traditional video content struggles with on its one-way feed.
We’ve already seen the value of this social content in Microsoft Corporation’s (MSFT) planned $26.2 billion acquisition of LinkedIn Corp (LNKD). Not only does the business networking platform promise an endless supply of content, but also its own distribution channel through which Microsoft can integrate its suite of office tools.
Now buyers have their sights set on other social media platforms and I’ve found one that could more than double in value based on recent acquisition deals.
Twitter May Not Be The Only Social Media Target
Revenue at the 140-character social leader continues to grow even as user growth slows. The company announced massive job cuts during its third-quarter report on the hope of improving profits and possibly drawing bidders back to the table.
While Twitter could still be in play, I think there is another social network that could be an imminent target…