Twitter held ‘preliminary discussions’ on acquisition of US operations of TikTok

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Amid an imminent ban on TikTok’s U.S. operations, Twitter has expressed an interest in obtaining the service, according to a new Wall Street magazine report.

The report explains why Twitter needs to buy TikTok is not obvious without delay, given the acquisition charge and the need for a truly extensive restructuring. However, twitter’s small extension will likely appeal to antitrust researchers.

Twitter has a market capitalization of approximately $30 billion, almost as much as the valuation of TikTok’s assets, and would like to raise really extensive additional capital. So it’s idea that Twitter isn’t in a position to fund a giant enough offer to upgrade Microsoft as a leader, especially before the deadline to close a sale set through President Trump.

Private equity firm Silver Lake, Twitter’s main shareholder, is interested in financing an agreement. Twitter declined to comment in the Wall Street Journal.

Despite the talks, Microsoft is still being regarded as the pioneer of negotiations for the acquisition of TikTok. Twitter argued that its offer would be preferable to Microsoft’s because it would not be stressed across China because it has no existing activity in that country, unlike Microsoft.

Discussions between TikTok’s Chinese parent company, ByteDance and Microsoft, are expected to conclude until 15 September, and negotiations are still preliminary. Microsoft said it will not provide an additional update until there is a definitive result.

Twitter had in the past acquired the short format video sharing app “Vine” in 2012, but eventually shut down the service 4 years later. TikTok operates in the same way as Vine and comparisons are made between services.

President Donald Trump friday signed two executive orders banning all U.S. transactions with Chinese-generation corporations and expressed a willingness to ban TikTok if it is not acquired through an American company. TikTok now plans to sue the Trump administration on Tuesday, in a direct challenge to the presidential executive order.

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