Twitter Explores Potential Merger With TikTok Amid U.S. Ban Threat
Twitter and TikTok hold preliminary discussions about a possible merger of TikTok's U.S. operations. This potential deal emerges as President Trump threatens to ban the app and Microsoft pursues its own acquisition.
Twitter and TikTok engage in preliminary discussions about a potential merger of TikTok's U.S. operations, according to a new report. This exploration follows Microsoft's confirmation that it is pursuing a takeover of the popular short-form video app. The talks occur under the looming threat of an executive order from President Donald Trump that effectively bans TikTok in the United States by September 21 unless ByteDance sells the app to an American buyer.
TikTok prepares to fight back against the proposed ban by filing a lawsuit against the Trump administration as early as Tuesday. The company argues that the president's order is unconstitutional because it denies TikTok due process and fails to provide evidence of actual national security threats. TikTok publicly calls the executive order a dangerous precedent for free expression and open markets.
The financial logistics of a Twitter-TikTok combination remain highly uncertain. Twitter holds a market capitalization of about $29 billion, which is significantly less than the $50 billion valuation placed on TikTok by some U.S.-based investors, meaning Twitter almost certainly needs financial partners to swing a deal. If successful, this acquisition represents Twitter's second attempt to conquer the short-form video space following its failed Vine experiment.