TikTok is in an opposite race to time, as he faces an imminent presidential ban. In addition to Microsoft, Twitter has contacted the Chinese-owned video sharing app for an agreement to get its operations in the United States, according to a report.
TikTok is in talks with Twitter about a “potential combination,” resources with the matter told the Wall Street Journal.
While the deal is possibly for Twitter, lately it is unclear whether the social microblogging site will continue to share with the Chinese app due to “significant challenges” that may also arise eventually, according to the report.
Details of the “potential combination” are still unknown at this time. The possibility of such an agreement remains to be seen.
Previous reports indicated that Microsoft planned to buy TikTok for up to $30 billion, an amount that may be too high for Twitter at this time, depending on the monetary capacity of the microblogging site, according to Forbes and MacroTrends.
The social media company will want outdoor assistance to accommodate Redmond’s estimated offering of between $10 billion and $30 billion.
“Twitter will struggle to raise enough investment to win even TikTok’s operations in the United States,” said Erik Gordon, a professor at the University of Michigan, Reuters reported. “It doesn’t have enough borrowing capacity.”
“If he (Twitter) tries to establish an investor organization, the situations will be difficult. Twitter’s own shareholders would probably prefer to have control over their existing business,” he added.
However, the duration of Twitter as a company, compared to Microsoft, is considered favorable to the agreement should it succeed. Its shorter length means that it will not be the subject of the same antitrust review as Microsoft, Apple and other giant companies.
Microsoft is expected to conclude negotiations in the coming weeks. The company previously said it had set a deadline in mid-September for an agreement.
The acquisition will allow TikTok to continue to operate in the United States, but under a U.S.-based company. Microsoft will have one year to move the TikTok code to the U.S. After you get it.
For now, TikTok users can start switching to another so that they can continue to create percentage videos with others in case the Chinese app is banned.
A TikTok is illustrated. Picture: AFP / Lionel BONAVENTURE