Twitter, which killed Vine, now wants to buy TikTok

Yolanda Curtis
August 10, 2020

Microsoft has been negotiating with ByteDance for weeks and is considered the frontrunner in any possible deal, the Wall Street Journal quoted its sources as saying.

Twitter has a market capitalization of close to $30 billion (23 billion pounds), nearly as much as the valuation of TikTok's assets to be divested, and would need to raise additional capital to fund the deal, according to the sources.

Twitter has a market cap of US$29.38 billion, while TikTok is valued at more than US$50 billion. "It doesn't have enough borrowing capacity", said Erik Gordon, a professor at the University of MI. But it said that Twitter was likely to face less antitrust scrutiny than Microsoft due to its size comparable to the USA software giant.

Meanwhile, The White House reportedly declined to comment on the report.

TikTok says that there are 100 million Americans using the platform for expression, entertainment, and connection, and has promised to continue to provide that to them - perhaps Microsoft's planned acquisition of the brand's American arm could aid in this.

"If China were to mimic Trump's gambit - alleging, without providing evidence, that some USA multinationals are potential national-security threats - it could force them to sell their operations to "very Chinese" buyers".

As the Trump administration is threatening to ban popular apps including TikTok and WeChat, "the United States may lose in Trump's war", warned an expert. Donald Trump has described it as a matter of national security.

Twitter has become the latest major company to be revealed as having an interest in buying part of TikTok's operations, just a week after Microsoft publicly acknowledged its talks with Chinese-owned app's owner, ByteDance. The lawsuit will be filed in the US District Court for the Southern District of California.

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