Twitter Held Preliminary Talks About Merging With TikTok
The American company Twitter held preliminary talks about a possible merger of its microblogging service with the social network TikTok, which is owned by the Chinese ByteDance, according to the WSJ.
According to its sources, Twitter is only interested in the American segment of the social network. Its market value could be in the tens of billions of dollars, raising questions about how the American company will be able to finance the deal. Twitter's market capitalization is close to $29 billion, and Microsoft considered the primary contender for the American segment of the social network, exceeds $1.6 trillion.
The newspaper does not have data on whether Twitter is ready to bring the negotiations to a logical end and compete with other competitors. This company will need strong partners to acquire part of the social network.
On Thursday, US President Donald Trump signed two executive orders prohibiting any transactions with ByteDance and its subsidiaries, as well as transactions related to the social network WeChat, with its owner - the Chinese Internet giant Tencent and its "daughters."
Bans in both cases come into force 45 days after the publication of the decrees, that is, at the end of September. Chinese Foreign Ministry spokesman Wang Wenbin, commenting on the signing of these two documents by the American leader, said that the US government should stop putting pressure on foreign companies under the pretext of ensuring national security.
Trump said on August 3 that Microsoft or another us company must conclude a deal to acquire TikTok by September 15, otherwise the social network will be banned from operating on US territory. On July 31, the President said that he plans to ban TikTok in the United States. Before this, Bloomberg reported, citing sources, that Trump is going to force ByteDance to give up its stake in the American division of TikTok so that the company could not control the operation of the app in the country. The concerns of the United States administration about the social network are related to allegations that its management is engaged in propaganda and transmits user data to the Chinese authorities.