Disney, Salesforce and Google's Alphabet Inc. have already backed out from buying Twitter. Now, sources from Disney revealed the primary reason why they withdrew. Apparently, it's not about the money. The squeaky clean company might have taken an issue of the widespread user abuse and hate in Twitter.
Twitter Is Not Fit For Disney's Wholesome Image
Sources who have knowledge about the matter have recently disclosed some details to Bloomberg. Walt Disney Co. was concerned about not being put in a negative light with the Twitter acquisition. The said social networking site is a haven for online verbal abuse and hate.
Particularly, trolls enjoy in making other people's lives miserable. Supporters of different known personalities, politicians, artists and celebrities have continuously used Twitter to express their thoughts. Fan wars and cyberbullying also take place. The block and report features don't seem effective in resolving the said issue.
It's not a surprise that Disney would want to distance itself from Twitter.
Other Reasons For Disney
Profit and user growth are not favorable for Twitter. It is still struggling in finding a good strategy to combat such financial decline. Disney would want to carefully review if a buy-out is beneficial to them.
In fact, Bloomberg further reports that Disney even hired investment banks JPMorgan Chase Co. and Guggenheim Partners LLC in their bid evaluation. It also considered the presentation made by Twitter executives
The sources made it known that some of the company's largest investors were against the Twitter purchase. The reasons given were the same ones already mentioned. This is aside from the fact that Twitter might not be profitable for Disney.
The Effect On Twitter's Stock
According to the International Business Times, Twitter's stock had increased during the announcement of the possible purchase by other companies. However, it had plunged when the news hit that Disney, Salesforce and Google's Alphabet Inc. had backed out.