Twitter Is Reportedly In Talks To Acquire TikTok's Business In The U.S

Twitter is believed to have jumped on the bandwagon to purchase TikTok’s business. However, at this point, we have no way to know if the social media platform can beat Microsoft in this endeavor.

According to a report from the Wall Street Journal, Twitter and TikTok have held talks over a possible combination of the two platforms, citing sources with insight into the matter.

The sources said in order to seal the deal, Twitter may have to raise capital since its market capitalization is roughly the same as TikTok’s, standing at around $29 billion.

As stated by Erik Gordon, a professor at the University of Michigan, Twitter will face lots of hardship collecting enough capital for the acquisition of the US operation alone. The social media platform doesn’t have the needed borrowing capacity.

President Donald Trump, citing security concerns, forces ByteDance – TikTok’s parent company to sell to a company in the U.S before September 15 or face a ban.

Microsoft, with a $1.6 trillion market cap, is the most prominent candidate to acquire TikTok. The tech giant said it would move quickly in negotiations with ByteDance.

While the terms of Twitter’s deal with TikTok are not revealed, the sources said the social media platform was confident that it would not face as much antitrust scrutiny as large companies like Microsoft would due to the smaller size.

In answer to President Trump’s executive order to ban TikTok in the US, ByteDance threatened to take legal action in return, saying that the order has a negative impact on open markets.

The lawsuit will reportedly be filed on Tuesday in the United States District Court for the Southern District of California.

>>> President Trump Gives TikTok 45 Days To Finalize Acquisition Deal With Microsoft