A strategic case could be made for Walt Disney Co. buying Twitter Inc. , but analyst Richard Tullo at Albert Fried said Monday that it looked at a bad idea, especially at current share prices. Twitter’s stock swung higher in afternoon trade Monday, to trade up 0.6% after being down as much as 4.3% earlier in the session, after running up 21% on Friday. The stock’s intraday bounce occurred after Bloomberg reported that Disney was working with a financial advisor to evaluate a possible bid for Twitter. “On the surface a deal makes no sense but if you think streaming video is potentially disruptive to live sports then there is a strategic case to be made,” Tullo wrote in an emailed note to clients. “Keep in mind Twitter [not covered] is an expensive stock on virtually every metric, and if no one bids for Twitter then it could be a broken deal stock.” On Friday, CNBC reported that Twitter was closing in on a buyout deal. Disney’s stock slumped 1.7% in afternoon trade, with losses accelerating after the report of interest in Twitter. The stock has dropped 13% year to date, while Twitter’s stock had lost 1.3% and the Dow Jones Industrial Average has gained 4%.
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