Twitter Joins Microsoft in Preliminary Talks to Acquire TikTok
Twitter holds preliminary discussions about a potential acquisition of TikTok's US business, though Microsoft remains the leading contender. The talks come amid an executive order from President Trump banning transactions with TikTok's parent company.
Twitter holds preliminary talks with TikTok about a potential combination as the social media app faces an uncertain future in the United States. Microsoft remains the front-runner to acquire TikTok, but Twitter's smaller size potentially helps it avoid anti-trust concerns that larger tech companies face.
The Wall Street Journal reports that it is unclear why Twitter pursues this deal given the massive price tag of TikTok. A variety of tech giants, including Apple, Google, and Facebook, reportedly express interest at some point, though Apple quickly denies the rumors and Microsoft publicly confirms its pursuit.
This potential acquisition stems from an executive order signed by President Trump that bans transactions with ByteDance, the China-based parent company of TikTok, over national security concerns. A sale to a United States company like Microsoft or Twitter alleviates these concerns before the 45-day ban takes effect.