With Microsoft being one of the frontrunners in bidding for TikTok’s US operations, Twitter joins but reportedly might not get enough time to gather finances.
TikTok is already in talks with companies and firms, looking for a way to keep its US users active. As the app continues to pose threats on national security and foreign policy, the Trump administration has given the video-sharing app until September 15 to find options, one of which would be Microsoft taking over some of TikTok's operations.
On Sunday, it was reported that Twitter is also in discussion with ByteDance, the current owner of TikTok. With Twitter’s interest in purchasing TikTok’s US operations, experts can’t say that they are confident Twitter will get the deal by the time Trump’s deadline for ByteDance is up.
Twitter’s market capitalization is currently close to $30 billion while TikTok is expected to be sold around $40 billion. “Twitter will have a hard time putting together enough financing to acquire even the US operations of TikTok. It doesn’t have enough borrowing capacity,” according to University of Michigan professor, Erik Gordon. Either way, one of Twitter’s shareholders, Silver Lake, looks interested in giving Twitter the help it needs to get their hands on the app that took only 3 years to become a hit since its initial release.
As for Microsoft, it is currently eyeing the US, Canada, Australia, and New Zealand operations of TikTok and has announced that they will address Donald Trump’s concerns on the app by putting TikTok under complete security review. Microsoft is planning to transfer all of TikTok’s data to servers located in the US, then delete data from servers outside the United States.
American users are also on edge to what would happen to TikTok. For Facebook, it looks like it is a good opportunity as it recently launched Instagram Reels, with features quite similar to the Beijing-based app for which ByteDance has called “plagiarism and smear.”
TikTok has already lost its users in Hong Kong and India, contributing to millions of losses in users and billions in revenue. If ByteDance successfully chooses a company that the Trump administration approves of, it can keep 165 million users.