The American company Twitter held preliminary talks with the video service TikTok, which is owned by the Chinese ByteDance, about a possible merger.
Twitter is interested in the American branch of the video application.
The main bidder for the acquisition of a stake in TikTok is Microsoft, which is in talks with ByteDance. Twitter will find it much harder to Finance the deal than the IT giant. Its exact cost is unknown, but experts estimate that it will amount to tens of billions of dollars. At the same time, the market capitalization of Twitter is close to $29 billion, and Microsoft-exceeds $1.6 trillion, the WSJ points out. CNBC reported earlier that Microsoft is ready to pay from $10 billion to $30 billion for TikTok.
Twitter will almost certainly need the help of other investors if the company decides to acquire a stake in TikTok, the newspaper writes. In addition, the WSJ notes, if the companies merge, Twitter will have to change. The social network has the ability to upload videos, but most users post short text messages and images there. TikTok is designed specifically for creating and viewing short videos.
WSJ also reminds that unlike Microsoft, Twitter does not work in China: the social network has been blocked in this country since 2009.
A Tiktok representative said the company does not comment on вЂњmarket rumors,вЂќ Bloomberg reports.
In 2012, Twitter bought Vine, a short Amateur video service. After a few years, it began to lose its audience, unable to compete with Instagram, Snapchat, and YouTube, and in October 2016, it was decided to close the service.
The US authorities believe that TikTok can transfer confidential data of Americans to the Chinese authorities. In early July, US Secretary of state Mike Pompeo allowed the video application to be blocked in the US. This was later stated by President Donald Trump, who demanded that TikTok be sold to Microsoft or any other American company before September 15. On August 7, he signed a decree that prohibits Americans from cooperating with ByteDance.
TikTok owners have repeatedly indicated that they operate independently of the Chinese authorities. In Beijing, Washington's demands to sell the service to an American company under the threat of blocking in the United States are considered an attempt of political pressure.