Twitter has reportedly entered talks to acquire TikTok’s US operations, after President Trump gave TikTok a 45-day ultimatum, to sell or be banned.
Last week, President Trump stepped up his threats and announced a possible ban on TikTok (and WeChat) in 45 days, giving a potential US buyer enough time to close a deal. Microsoft confirmed interest, Apple denied its own interest, but now Twitter could be a new possible candidate to purchase TikTok’s US operations.
Related | TikTok Is Launching Its First TV App On Amazon Fire TV
The Wall Street Journal reports that Twitter has held preliminary talks for a possible combination with TikTok. However, with a market capitalization of $29 billion, Twitter is worth almost the same as the assets TikTok was ordered to divest.
This means Twitter would need to raise additional capital in order to pursue a deal.
“Twitter will have a hard time putting together enough financing to acquire even the U.S. operations of TikTok. It doesn’t have enough borrowing capacity,” said University of Michigan professor Erik Gordon.
TikTok is facing an ultimatum to sell its US operations by September 15. A timeline like this makes it almost impossible for Twitter to be a serious contender. On the other hand, Microsoft, with its $1.6 trillion market cap, has confirmed interest, saying that it will “move quickly” in its talks with ByteDance to acquire TikTok’s US operations.
“TwiTok” sounds interesting, but I doubt it could happen (although DT would love that). Our take is that TikTok will soon operate in the US as part of Microsoft.
You might also like
More from TikTok
TikTok Starts Applying Labels To Content From State-controlled Accounts
In response to the war in Ukraine, TikTok is rolling out its state media policy to label content from some …
TikTok Introduces ‘TikTok Tactics’ Online Training For Marketers
The free online course provides easy-to-follow best practices to level-up marketers' approaches to advertising on the platform.
TikTok Introduces Instant Page, A Lighting Fast Landing Page Feature
TikTok has introduced a new customizable shopping ad display option to streamline the customer journey for users.
TikTok Is Working On A New Avatar-Creation Tool
TikTok seems to be working on a new feature that allows users to build their digital identity in the app …
TikTok Partners With Zefr To Ensure Safe Ad Placements
TikTok has announced a new partnership with brand suitability platform Zefr to ensure ads won't end up next to undesirable, …
TikTok May Be Bringing Back The Option To See Who Viewed Your Profile
TikTok may be working on reinstating a feature that allows users to know who viewed their profile in the past …
Do ‘For You’ Page Hashtags Actually Work Οn TikTok?
Do 'For You' Page hashtags work on TikTok? Hootsuite's Senior Social Marketing Manager, Amanda Wood, and her team seek the …
TikTok Is Coming To A Waiting Room TV Near You
After conquering both your phone and your home, TikTok could soon broadcast on a waiting room TV near you, thanks …
TikTok Adds A ‘Repost’ Button
TikTok is reportedly adding a new "Repost" button, allowing users to re-share clips in their 'Following' and 'For You' feeds.