Social networking site Twitter has entered the race to acquire Vine-copycat TikTok.
With the United States planning to ban TikTok unless a U.S. buyer is found by September, Twitter has added its name to the hat, according to The Wall Street Journal, joining Microsoft who is already in advanced talks with the Chinese social network, owned by ByteDance.
The report doesn’t offer many specifics on why Twitter would like to purchase TikTok, especially considering that the cost of a potential acquisition would require restructuring at Twitter.
But because Twitter has a relatively small user base compared with Facebook, the deal would no doubt go down well with regulators and antitrust investigators.
Right now, Twitter is reportedly worth around $30 billion, the same as TikTok, meaning the social network would need to raise significant capital. Twitter wouldn’t be able to finance a buyout on its own, but it could be the “fall back” option if Microsoft’s acquisition doesn’t work.
According to The Wall Street Journal, Silver Lake, a private equity firm that has close ties with Twitter, is reportedly interested in funding the deal, allowing Twitter to grow overnight.
Despite Twitter’s talks, Microsoft is still the favorite to purchase TikTok. It’s thought that talks between TikTok and Microsoft should conclude no later than September 15, and Microsoft has already said that it won’t provide an update on discussions until there’s an outcome.
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