12.5 C
New York
Friday, October 23, 2020
Home News Twitter Held 'Preliminary Talks' About Acquiring TikTok's U.S. Operations

Twitter Held ‘Preliminary Talks’ About Acquiring TikTok’s U.S. Operations

Amid an impending ban on U.S. operations of TikTok, Twitter has expressed interest in acquiring the service, according to a new report from The Wall Street Journal.

The report explains that it is not immediately obvious why Twitter is interested in purchasing TikTok, given the cost of acquisition and the need for substantial restructuring. Twitter’s comparatively small size would, however, likely please antitrust investigators.

Twitter has a market capitalization of around $30 billion, which is almost as much as the valuation of TikTok’s available assets, and would need to raise substantial additional capital. Twitter is therefore thought to be unable to finance a large enough bid to displace Microsoft as the front-runner, particularly before the deadline to complete a sale set out by President Trump.

Private equity company Silver Lake, a major Twitter shareholder, is said to be interested in helping to fund a deal. Twitter declined to comment to The Wall Street Journal.

In spite of the talks, Microsoft is still believed to be the front-runner in negotiations to purchase TikTok. Twitter has apparently made the case that its bid would be preferable to Microsoft’s since it would not face any pressure from China since it has no current business in that country, unlike Microsoft.

The discussions between TikTok’s Chinese parent company ByteDance and Microsoft are supposed to complete no later than September 15, and negotiations are still preliminary. Microsoft has said that it will not provide a further update until there is a definitive outcome.

Twitter previously acquired the short-form video sharing app “Vine” in 2012, but eventually closed the service four years later. TikTok operates similarly to Vine, and comparisons are often drawn between the services.

President Donald Trump signed two executive orders on Friday that set about banning any U.S. transactions with Chinese tech companies, and expressed his will to ban TikTok if it was not acquired by a U.S. company. TikTok is now reportedly planning to sue the Trump administration as soon as Tuesday, in a direct challenge to the president’s executive order.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.Tags: Twitter, Vine, TikTok
This article, “Twitter Held ‘Preliminary Talks’ About Acquiring TikTok’s U.S. Operations” first appeared on MacRumors.com

Discuss this article in our forums

MacRumors-All?d=6W8y8wAjSf4 MacRumors-All?d=qj6IDK7rITs

Latest

Mobvoi TicWatch 3 Pro review: Swift performance, seriously long battery life

Does cutting-edge Qualcomm hardware finally put it on par with Apple or Samsung?

OnePlus 8T vs. iPhone 12: Can OnePlus’ latest kill Apple’s flagship?

The OnePlus 8T and iPhone 12 are similarly priced flagships that offer beauty, speed, and great cameras. We find out which one is best in this head-to-head.

Save $40 on your iPad Air (2020) pre-order by shopping at this retailer

The fourth-generation iPad Air with 64GB storage hasn't started shipping yet, but Amazon is already offering a discount on the upcoming tablet for pre-orders.

You can buy a factory-sealed Apple Watch for just $169 right now

In the market for a new smartwatch? The Apple Watch Series 3 is just $169 at Amazon right now.