Now, Twitter eyes acquisition of TikTok

Washington: After Microsoft, Twitter Inc has held early talks about a potential combination with TikTok, the Chinese-owned video-sharing app that the Trump administration has declared a national-security threat, Dow Jones reported, citing people familiar with the matter.

Trump last week ordered firms to stop doing business with TikTok within 45 days over security concerns. Tech giant Microsoft is the front-runner to buy TikTok but now Twitter has emerged as a possible suitor.

But it remains unclear whether Twitter can afford to buy TikTok from its Chinese owners and can complete a deal within the 45-day window, according to sources quoted in the Wall Street Journal.

Microsoft has been negotiating for weeks with TikTok’s owner, Beijing-based ByteDance Ltd., and is considered the front-runner for any possible deal, according to the people. Microsoft CEO Satya Nadella spoke with President Donald Trump about the matter a week ago.

Twitter’s market capitalization is about $29 billion, smaller than Microsoft. Twitter would almost certainly need help from other investors if it does buy TikTok, Dow Jones said.

 

Agency