About a week ago it was reported that Disney and Netflix had started talks about a possible sale of Netflix. At the time it was looking like Disney was debating between buying Netflix and Twitter to help expand their brand into online streaming.
Now Bloomberg has reported that Disney is dropping their bid for Twitter over fears of their image being effected. In short Disney was worried about abusive behavior and less-than-family-friendly content on Twitter being linked to the Disney brand.
What Disney wanted from Twitter were the streaming rights Twitter recently acquired for content from the NFL, Pac-12, NBA, and many other services; however, it seems the traditional social media part of Twitter was the reason the deal fell apart.
The failure of the Twitter deal makes the Netflix option more real. Recently Disney announced to their investors that they see the future of movies and TV shows to be online. Buying Netflix helps them control how their content is released online because currently they are relying on services such as Netflix, Hulu, and Amazon to stream their content.
Both Disney and Netflix have declined to comment on how the talks are going but just the fact that they are declining to comment typically means the talks are going well. Typically companies only comment on such talks when they hope to use the comment to effect the end result of the talks.
Even if Netflix and Disney come to an agreement it will likely take some time to get approval from regulators; however, this could be a win-win for both companies. Netflix would get the money they need to keep making original content and Disney will get control of their digital content.
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