The stock was up just 1.5% at noon, but the broader Nasdaq stock index had fallen by almost 1%.
On Saturday, the Wall Street Journal said the deal would involve TikTok’s U.S. operations, but it is unclear if Twitter will move forward with a purchase. TikTok is thought to be worth tens of billions of dollars, which raises questions about whether Twitter, which has a market of about $ 30 billion, can pay for the app.
Twitter (TWTR) did not comment to CNN Business on the Journal’s report.
When it comes to resources to buy TikTok, the small size of Twitter can reduce anti-trust concerns. Twitter previously owned another video app, Vine, but it will close in 2017.
Last week, Microsoft (MSFT) said it was moving forward with talks to get TikTok after a conversation between CEO Satya Nadella and President Donald Trump. The transaction could be complicated and difficult to complete. And in recent years, Microsoft has shifted its strategy from consumer to business.
A deal would create a new structure in which Microsoft would own and operate TikTok services in the United States, Canada, Australia and New Zealand. As part of the agreement, Microsoft said it would ensure that all private data of US users of TikTok would be transferred to and remain in the US.
Microsoft said that “at least” the conversation with ByteDance, the owner of TikTok, would end no later than September 15. That’s the date Trump set as the deadline for TikTok to find an American buyer. If he did not do this, he said, it would lead him to close the app in the country.
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