Twitter Reportedly Makes Move To Acquire TikTok Ahead Of 15 Sept.

Twitter Reportedly Makes Move To Acquire TikTok Ahead Of 15 Sept.
Twitter Reportedly Makes Move To Acquire TikTok Ahead Of 15 Sept. / Photo credit: Screengrab
Share this article with friends

TikTok’s list of suitors is extending significantly beyond Microsoft. Wall Street Journal sources say Twitter has held “preliminary talks” about a possible union with TikTok’s US business.

MORE FROM RAVZGADGET: TikTok Drags President Donald Trump To Court Over Ban

It’s still very early, and might not move forward, but Twitter reportedly believes it has an advantage over bidders like Microsoft due to its size. It thinks it wouldn’t face as much antitrust scrutiny if it clinched a deal, according to the tipsters.

Twitter’s size could also be a drawback, however. TikTok’s US business alone could be worth tens of billions of dollars, and that would be a serious obstacle when Twitter’s entire market capitalization is $29 billion. It would likely need to draw on help from investors and take on a large amount of debt.

And while it has been relatively successful in recent years, it suffered a loss of more than $1.2 billion in its latest quarter. The company might not be in a position to buy a behemoth like TikTok.

A deal would dramatically change Twitter’s course, though. It’s considered small relative to Facebook at the moment, but it would suddenly have considerably more clout — it has 186 million daily active users worldwide, but TikTok was said to have 41 million (not including its Chinese sibling Douyin) before the pandemic.

Unlike the ill-fated Vine deal, TikTok would likely have to be treated more like a full-fledged counterpart to Twitter than a compliment.

MORE FROM RAVZGADGET: Instagram Reels Is A TikTok Rival, But The Difference Is Very Clear

Whether or not Twitter makes a move, the report underscores the pressure on TikTok. President Trump has given the company until September 15th to sell its US operations if it wants to avoid a ban in the country. TikTok doesn’t have much time to close a deal, and that means being open to offers it wouldn’t have entertained in the past.

Stay connected to trending technology news by following @Ravzgadget on Twitter.

Share this article with friends
5 1 vote
Article Rating
Subscribe
Notify of
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
binance Empfehlung
10 months ago

Your article helped me a lot, is there any more related content? Thanks! https://www.binance.com/de-CH/register?ref=DB40ITMB