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Walt Disney Co (DIS) Searching For Startups To Enhance Its Digital Distribution Network

Last year, Walt Disney Co (NYSE:DIS) made headlines after it emerged it was planning to acquire Buzzfeed with the news cooling down after the startup demanded $1 billion. Speculations could be resurrected in the days to come after CFO, Jay Rasulo, told TechCrunch that the company was targeting startups that could provide avenues for distributing content across various digital platforms especially online.


Rasulo appearing on the ongoing Consumer Electronics Show in Las Vegas affirmed that the company remained contended with its current line of content lead by Star Wars Universe and Walt Disney Co (NYSE:DIS) itself. The CFO remains confident that they will be able to do something on the distribution side of operations this year

Last year Disney made a push for the digital space with the acquisition of a $500 million startup Maker Studios. Maker Studios is a perfect fit for Walt Disney Co (NYSE:DIS) according to Rasulo as the unit comes with an intellectual property that can be distributed across Disney’s ecosystem. The unit acts as key short form creation studio while also acting as distribution nerve center.

It is still not yet clear as to whether Disney will push to acquire a distribution network as it currently relies on third-parties to address the needs of its audience. Walt Disney Co (NYSE:DIS) currently relies on YouTube and Cinemas to reach its expansive audience. Direct relationship with customers is one of the drivers that may push Disney into acquiring a distribution network that it can Control to meet the needs of its massive audience.

Rasulo sentiments show a clear shift of focus for media companies will are slowly trying to become tech companies with diversification of operations. Tech is seen as an essential area by media companies with most of them believing that becoming tech companies will give them an opportunity of understanding what consumers want while also adding science to it.

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