Twitter Inc (NYSE:TWTR) reportedly has a new potential suitor, and it’s out of left field. Walt Disney Co (NYSE:DIS) is talking to a financial adviser about a potential bid, a Bloomberg report says, and Wall Street doesn’t like it. Twitter stock is ahead just 1% on the news, and Disney stock dipped 2% almost immediately.
TWTR popped on Friday amid a CNBC report that several companies were interested in buying the struggling social media company. Salesforce.com, Inc. (NYSE:CRM) reportedly is talking to Bank of America, and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) — whose name often comes up as a possible Twitter buyer — was rumored to be interested this time around, too.
Disney is looking for something to stem what has been a terrible 2016 for the entertainment conglomerate. DIS stock is off 13% for the year-to-date, thanks in large part to struggles in its ESPN sports division.
Disney also is trying to establish itself among the myriad players in the streaming video market — a direction that CEO Jack Dorsey has his company heading in an effort to turn Twitter stock around.
DIS would have to raise funds for any acquisition — likely through a debt raise or selling additional Disney stock — if it planned on going solo. The company had only $5.2 billion in cash and short-term investments as of the most recent quarter, and Twitter stock currently has a market cap of nearly $20 million. That doesn’t factor in any sort of buyout premium.
