After U.S. President trump ordered tiktok to be banned on the grounds of so-called national security, Microsoft is actively taking action to include tiktok. The Wall Street Journal and Reuters quoted sources on the 9th, and social media giant twitter also targeted tiktok and intended to merge its business.
Twitter and tiktok are in preliminary talks to study the feasibility of a merger, including the involvement of tiktoks U.S. operations, people familiar with the matter said.
Whether twitter will ultimately decide on the acquisition plan is still unknown. Given that Twitters enterprise size is much smaller than Microsofts, and its hard to pay high acquisition fees, its bound to face huge challenges.
Twitter shows interest in merging tiktok, Reuters
Microsoft and its parent company, byte hop, are discussing the acquisition plan, including tiktoks businesses in the United States, Australia, Canada and New Zealand.
CNBC reporter David Faber revealed earlier on the show that Microsoft and tiktok plan to complete the acquisition negotiations within three weeks, with a value of up to $30 billion. And Microsoft has agreed that if the deal is successful, it will bring back all the code that maintains tiktok operations from China to the United States within a year.
The market value of Twitter is close to $30 billion, almost as much as tiktok is about to divest, far from Microsofts $1.6 trillion, Reuters said.
Twitter has had a stable surplus for many years, but in the latest quarter, it lost $1.23 billion. As of June, the companys cash and short-term investments totaled $7.8 billion, while Microsoft had $136 billion in available funds. It is worth noting that Twitter shut down vine, a short video application with similar functions to tiktok, in 2016 for the sake of cost saving.
The report quoted University of Michigan Professor Erik Gordon as saying that even if it was to acquire tiktoks U.S. business, it would be difficult for Twitter to raise enough capital and it did not have enough borrowing capacity.
If you try to group investment, the terms will be quite harsh, and Twitters shareholders may prefer management to focus on existing business.
One of Twitters shareholders, private equity firm Silver Lake, is interested in funding a potential deal, one of the sources added.
However, the advantage of twitter lies in its smaller size and may not face the same level of antitrust scrutiny as Microsoft or other potential bidders, the report said.
Trump threatens to ban tiktok, skynews
Tiktok is being encircled by the US government and business circles. Trump signed an administrative order on August 6, local time, prohibiting US individuals and entities from conducting any transactions with the byte hopping of tiktoks parent company. The ban will take effect in 45 days (September 20).
Recently, instagram, a social media platform owned by Facebook, a US technology giant, launched a new feature called reels in time, which is regarded as a fake version of tiktok by US media.
According to the New York Times reported on the 7th, the evaluation results recently obtained by the Central Intelligence Agency (CIA) and submitted to the White House believe that the Chinese government has not obtained user data from the video app tiktok, which makes a series of recent accusations by the trump administration against the Chinese government and Chinese apps completely untenable.
In response to trumps executive order, byte beat said that if the U.S. government fails to give fair treatment, it will resort to the U.S. court. According to the latest news from US media, tiktok will file a federal lawsuit against trump administration as soon as Tuesday.
Source: observer.com editor in charge: Wang Fengzhi_ NT2541