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No matter which way you look at it, Twitter is yet to prove itself as a successful business. They haven't had a positive net income quarter ever, they keep burn

No matter which way you look at it, Twitter is yet to prove itself as a successful business. They haven't had a positive net income quarter ever, they keep burning through the investors' money. In the last quarter they lost $107M (on $602M of revenue). https://www.google.com/finance?q=NYSE%3ATWTR&fstype=ii&ei=l232V4vNHYbfsgHpi4XoAQ https://www.google.com/finance?q=NYSE%3ATWTR&fstype=ii&ei=l2...

Retric 10y ago
I am usually very skeptical for synergy arguments, but Disney could make it work. Twitter as an influence platform is far more powerful than twitter as a profit engine. Disney as a brand is a small chunk of the giant corporation that is Disney the company. If they get a few million / year benefit each across Pixar, Lucasfilm, Marvel Entertainment, Touchstone Pictures, ESPN, American Broadcasting Company (ABC) etc that's significant value. From the other side they can cheaply cross promote Twitter from all those media companies. Disney has long been about about merchandising not just entertainment, and they are a surprisingly innovative tech focused company. Arguably, they could get most of this from the data feed for minimal outlay, but owning twitter let's them develop the kind of tools useful for themselves. So, think faster AB testing for commercials not just cash. Much like how Pixar does a lot of software development even though they make money from movies.
- cwilkes 10y ago
  I'm not sure what you mean by "Disney as a brand is a small chunk". Name one person that doesn't know Disney or what they offer.
  - Retric 10y ago
    Disney the company owns things like ABC, A&E, and ESPN that are not part of Disney the brand. AKA, if you are watching ESPN you don't think Disney in any way shape or form. https://thewaltdisneycompany.com/the-walt-disney-company-reports-record-quarterly-earnings-for-the-first-quarter-of-fiscal-2016/ https://thewaltdisneycompany.com/the-walt-disney-company-rep... There is increasing crossover with Star Wars, and Pixar. However, they both started off independent so have strong brand identity on their own. PS: The only really unifying concept with Disney is entertainment and abusing IP laws to squeeze ever more money from ever blander content.

Retric 10y ago

I am usually very skeptical for synergy arguments, but Disney could make it work. Twitter as an influence platform is far more powerful than twitter as a profit engine. Disney as a brand is a small chunk of the giant corporation that is Disney the company. If they get a few million / year benefit each across Pixar, Lucasfilm, Marvel Entertainment, Touchstone Pictures, ESPN, American Broadcasting Company (ABC) etc that's significant value. From the other side they can cheaply cross promote Twitter from all those media companies. Disney has long been about about merchandising not just entertainment, and they are a surprisingly innovative tech focused company. Arguably, they could get most of this from the data feed for minimal outlay, but owning twitter let's them develop the kind of tools useful for themselves. So, think faster AB testing for commercials not just cash. Much like how Pixar does a lot of software development even though they make money from movies.

cwilkes 10y ago
I'm not sure what you mean by "Disney as a brand is a small chunk". Name one person that doesn't know Disney or what they offer.
- Retric 10y ago
  Disney the company owns things like ABC, A&E, and ESPN that are not part of Disney the brand. AKA, if you are watching ESPN you don't think Disney in any way shape or form. https://thewaltdisneycompany.com/the-walt-disney-company-reports-record-quarterly-earnings-for-the-first-quarter-of-fiscal-2016/ https://thewaltdisneycompany.com/the-walt-disney-company-rep... There is increasing crossover with Star Wars, and Pixar. However, they both started off independent so have strong brand identity on their own. PS: The only really unifying concept with Disney is entertainment and abusing IP laws to squeeze ever more money from ever blander content.