The curious case of TikTok in the United States took a new turn today with Twitter emerging as the latest contender to buy the short video maker app. According to a report Per the Wall Street Journal, Twitter has had "preliminary talks" with TikTok to merge its business with the Chinese app.
One of the main reasons Twitter believes it has the edge over Microsoft is the fact that it is comparatively smaller than the maker of Windows, which would help it not attract any antitrust scrutiny.
However, the fact that Twitter has a much smaller business and economic value could also mean that the social media company may have to borrow large loans to complete the deal. Twitter has a market cap of $ 29 billion, while TikTok's US business could cost around tens of billions, and therefore the chances of a deal are very remote.
From a financial standpoint, Twitter is unable to buy a monster like TikTok as the company headed by Jack Dorsey suffered a loss of $ 1.2 billion in the last quarter and a merger with TikTok. could prove to be costly. .
Twitter's interest in TikTok could be linked to its failure in the short video app niche. In 2012, the social media giant acquired Vine, a short video maker app, but was unable to bring success to the app and ultimately shut it down four years later.
Twitter is not the only company to have expressed interest in buying TikTok's US business. Apple, Facebook, Google, Twitter and Microsoft are said to be competing to buy TikTok, but only Microsoft has openly accepted that it is a "potential" buyer.
Now that President Trump has signed the executive order to ban TikTok in the United States after 45 days if an American company does not buy it, we might expect more offers from other buyers in the remaining days, because the Chinese company is looking forward to making the deal soon.
