Twitter ‘searches’ for a possible TikTok tie-up


Twitter has approached Chinese owner TteTok of ByteDance to express an interest.Copyright
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Twitter has approached Chinese owner TteTok of ByteDance to express interest in buying its US operations, according to reports.

Video sharing platform TikTok has been the center of heated debate and takeover talks in recent weeks.

Last week, US President Donald Trump ordered companies to stop using TikTok within 45 days to raise security concerns.

Tech giant Microsoft is the front-runner to buy TikTok, but now Twitter has emerged as a potential suitor.

But it remains unclear whether Twitter can pay to buy TikTok from its Chinese owners and complete a deal within the 45-day window, according to sources quoted in the Wall Street Journal.

The value of TikTok’s US operations is unclear, but estimates put it at tens of billions of dollars.

Twitter’s market capitalization is about $ 29bn (£ 22bn), dwarfed by Microsoft at more than $ 1.6tn.

But experts believe a possible Twitter deal would have less regulatory control than Microsoft’s.

A Twitter spokesperson declined to comment on a possible deal, while TikTok did not immediately respond when contacted by the BBC.

‘Shocked’

Last Friday, Mr Trump ordered U.S. companies to stop doing business with the Chinese app within 45 days. The Trump administration claims that the Chinese government has access to user information collected by TikTok, which the company has consistently denied.

In response to the US President’s executive order, TikTok threatened legal action against the US, saying it was “shocked” by the move.

The US government also unveiled a ban on messaging app WeChat by Chinese, as tensions escalate between the two countries.

Mr Trump said last week that he would support Microsoft’s efforts to buy TikTok’s US operations if the government received a “substantial share” of the proceeds.

He has set a deadline of September 15 to complete the deal or the ban will continue.

Microsoft said it would “move quickly to track calls” for TikTok’s operations in the US, Australia, Canada and New Zealand.

“Even if the deal goes through, whether it’s Microsoft or Twitter taking a substantial stake in TikTok, what remains to be seen is how both parties will progress operationally,” said communications expert Sharon Koh.

“It will also take a tumultuous effort for both organizations to sway through the political sensibilities,” she added.