TikTok, Twitter held talks about sale of well-liked video app, says report


Angela Lang/CNET

Add Twitter to TikTok’s checklist of potential dance companions. The Wall Road Journal reported Saturday that the social community has had preliminary talks with TikTok about shopping for the US operations of the vastly well-liked, Chinese language-owned video app.

On Thursday, US President Donald Trump issued an government order that may successfully ban TikTok within the US. However since that order would not kick in until subsequent month, it leaves open the prospect of a sale to a US-based firm.

Microsoft, Apple, Google and Fb have all been name-checked within the press as doable purchasers, and Microsoft has acknowledged it is pursuing a deal.

Trump and others say TikTok is a nationwide safety menace as a result of it collects US customers’ knowledge and its proprietor, ByteDance, is beholden to China’s communist authorities. ByteDance has denied that the app presents any such menace.

It is unclear if Twitter will truly pursue a deal, the Journal stated, citing nameless sources. Microsoft is farther alongside in negotiations, the information outlet stated, and being smaller, Twitter would have a harder time elevating sufficient cash to purchase the app.

A Microsoft-TikTok deal could possibly be value between $10 billion and $30 billion, relying on how a lot of TikTok the tech large agreed to accumulate, CNBC has reported. Twitter’s market capitalization is roughly $29 billion and Microsoft’s is over $1.6 trillion, the Journal famous.

However Twitter’s smaller dimension could possibly be a bonus, the social media firm has reasoned, as a result of it would not be topic to the identical stage of antitrust scrutiny, the Journal stated.

A wedding with TikTok would not be Twitter’s first foray into brief movies. In 2012, the corporate purchased startup Vine for $30 million, solely to shut down Vine in 2016.

Each Twitter and TikTok declined to touch upon the Journal report.

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