Walt Disney Co (NYSE:DIS) has reportedly joined the list of potential buyers for Twitter Inc (NYSE:TWTR) as the bidding war for the social media platform is heating up. However, Nomura analyst Anthony Diclemente doesn’t see enough value creation to justify such a deal.

Diclemente explained, “We simply do not think that the potential combination is likely to provide enough meaningful industrial or strategic logic to offset what promises to be a very high price tag for Disney and its shareholders.”

The analyst continued, “As analysts who cover both Disney and Twitter, however, we think that execution risk here would be quite high given the large scale and financial dilution of a possible integration; in addition, we are specifically concerned that contractual restraints around some of Disney’s current professional sports rights contracts will require the company to incrementally invest in expensive direct-to-consumer digital sports rights in order to integrate TV and internet sports distribution. For a number of important reasons, we contend Disney could find more shareholder-friendly uses for its capital than this acquisition.”

Diclemente rates TWTR stock a Neutral with a $13 price target, and rates DIS a Buy with a price target of 115.00.

As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anthony Diclemente has a yearly average return of 8.2% and a 61% success rate. Diclemente is ranked #348 out of 4183 analysts.