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 buying tiktok Reuters
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.
If you try to group investment, the terms will be quite harsh, and Twitters shareholders may prefer management to focus on existing business.
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.
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).
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.
Tiktok: no comment on market rumors
Reuters quoted the Wall Street journal 8 tiktok reported that according to informed sources, the twitter social media platform has been initially negotiated with TikTok (overseas version of jitter) on potential mergers, and reported that the negotiations involved TikToks business in the US. But it is not clear whether twitter will make a deal with tiktok, the report said.
In response, USA Today said on the 8th that Twitter and tiktok declined to comment on the news in an interview with the media on the 8th, but tiktok said it would not comment on market rumors.