News comes that Walt Disney Co. recently decided against pursuing a bid for Twitter. As it happens, the company went to a great deal of trouble in doing its due diligence on behalf of the prospective move, and even retained the services of two investment banks, JPMorgan Chase & Co. and Guggenheim Partners LLC. As interesting as Twitter is, however, Disney decided it could not reconcile the social media monster’s market value of roughly $12 billion with the fact that it is still hemorrhaging money. In fact, according to Bloomberg, a few of the largest investors in Disney bent the ears of some key people there, declaring how unhappy they were at the prospect of the acquisition, considering that Twitter just can’t seem to get on the right track as far as financial functionality goes.
That said, regular, old business “stuff” is not the only reason that Disney decided against formally going after Twitter.
Turns out, according to insiders, that Disney ultimately decided that the way people “speak” to each other on Twitter is getting out of hand, so much so that Disney was concerned that the wholesome family image for which it is famous would likely take a hit if the company went into business with Twitter.
For its part, Twitter only recently began looking in earnest for ways that technology can help to keep the dialogue on its platform less odious, according to Bloomberg, but it would do well to make the effort a real priority – Disney’s decision to leave Twitter alone suggests that the matter of the harsh discourse may be more of an impediment to realizing key business objectives than Twitter execs may have previously thought.
By Robert G. Yetman, Jr. Editor At Large