Twitter Was In Preliminary Talks To Acquire TikTok In The US
Twitter Inc. was in preliminary talks to buy the popular short video sharing service TikTok, owned by China's ByteDance Ltd., writes the WSJ, citing knowledgeable sources.
According to them, it was only about the American operations of TikTok.
It was previously reported that Microsoft Corp. has been in talks with ByteDance for several weeks to acquire TikTok's operations not only in the US but also in Australia, Canada, and New Zealand.
Microsoft remains the main contender to buy TikTok, sources say.
There is not much time left to approve the deal: last Thursday, US President Donald Trump signed an Executive order that effectively set a 45-day deadline for the purchase of TikTok by an American company. According to the decree of trump, after this period, all subjects of US jurisdiction will be prohibited from transactions with ByteDance.
The Trump administration believes that TikTok poses a threat to the economic and national security of the United States because it gives the Chinese authorities access to the data of Americans collected by the app.
According to trump's decree, TikTok must find a buyer by September 15 or be blocked in the US.
According to experts, TikTok's American operations can be valued in the tens of billions of dollars. This raises the question of how Twitter will be able to finance the deal.
Twitter's capitalization is about $29 billion, which is significantly lower than the market value of Microsoft, which exceeds $1.6 trillion.
At the same time, TikTok's deal with Twitter would probably raise far fewer questions from antitrust regulators than the deal with Microsoft, experts say.