Twitter sale: the 12 media companies that could actually afford to buy Twitter [data]
There’s been a lot of chatter around Twitter looking for suitors to sell to, however with a $16 billion+ price tag there realistically aren’t that many companies that could actually afford to buy the company.
Hackers.Media have done some number crunching, and put together a list of companies that have the size, cash / cash-flow and strategic will to be able to follow-through and buy Twitter.
*The reason we’ve included *cash* as a factor into the mix is that a) Twitter is burning through a lot of cash at present ($450+ million last year) b) although it loses money, Twitter has huge revenue growth (57% last year - the highest of any media company) so the company definitely has value out of its growth potential and because of this isn’t going to be massively keen to trade for stock (especially from a slow growing traditional media company like Disney), so would therefore likely prefer an all cash deal c) to pay for an all cash deal would mean a company (unless your Google) raising debt, which is tricky if you’re trying to raise c.$16 billion.
**We’ve also included a couple of European companies into the mix. These are real outsiders for a number of reasons (mainly cash reasons, especially if you’re a conservative German company like Bertelsmann who are debt / gearing averse), but interesting to throw in as strategically Twitter would offer some great strategic value to them.
I’m sure the smart and overpaid people over at Goldman are chewing over a similar spreadsheet. And if I was sat at the next Twitter board meeting I’d be pretty confident in getting a good price for the company. Although there isn’t a tonne of potential buyers, there’s enough suitors with enough cash and strategic will to start a bidding war and push the price up.
The interesting suitors are the companies with high strategic value and large piles of cash - like cable TV companies. It’s these CEOs, like Bob Iger at Disney and Brian Roberts at Comcast, who’d be interested in acquiring Twitter as a strategic digital asset. Given the high rate of cord cutting (as highlighted by Matthew Ball in the graph above) buying Twitter's probably worth a punt . . .