Twitter has had preliminary discussions about the “association” with TikTok, The Wall Street Journal reported, making the social media platform the latest possible matching app for the popular video-sharing app. As WSJ Note, it’s unclear if Twitter will pursue the acquisition of TikTok or not, and any such deal will face major setbacks.
The biggest challenge to any deal is the Trump administration’s executive order from August 6, which prohibits TikTok’s parent company ByteDance from handling transactions in the US. The order is valid for 45 days. Authorities view the China-owned app as a potential security threat, though there is no evidence that ByteDance or TikTok ever shared American data with the Chinese government. TikTok said it plans to challenge the Trump administration̵7;s orders.
And then there’s Microsoft, the only company so far openly admitted that it’s in talks with ByteDance, owner of TikTok, for a possible acquisition. The WSJ said Twitter would be seen as a big step in the TikTok tender, with Microsoft likely to be the leader in any deal. Twitter is much smaller than Microsoft and WSJ’s The social platform may face less antitrust scrutiny than Microsoft does, sources say. But Twitter doesn’t have as much money as the software giant can afford.
Microsoft said in an August 2 blog post that its CEO Satya Nadella spoke to President Trump about a possible acquisition of TikTok, including TikTok’s operations in the US, Australia, Canada and New Zealand. Microsoft said it expected the negotiations to conclude on September 15.
Any agreement with Twitter will involve TikTok’s US activities, according to WSJ.
Twitter declined to comment. A TikTok spokesperson said the company did not comment on market rumors.