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    Twitter, TikTok in talks for possible merger: Report

    Synopsis

    Microsoft has been negotiating for weeks with TikTok’s owner, Beijing-based ByteDance Ltd., and is considered the front-runner for any possible deal, according to the people.

    TikTok plans to file a federal lawsuit as soon as Tuesday to challenge President Trump's executive order banning the videosharing service from the US as unconstitutional.
    SAN FRANCISCO: Twitter Inc has held early talks about a potential combination with TikTok, the Chinese-owned video-sharing app that the Trump administration has declared a national-security threat, Dow Jones reported, citing people familiar with the matter.

    It’s unclear whether Twitter will pursue a deal, which would involve TikTok’s US operations, the people said. Because Twitter is much smaller, the San Francisco-based social media company has reasoned it probably wouldn’t face the same level of antitrust scrutiny as Microsoft Corp or other potential bidders, people familiar with the discussions told Dow Jones.

    Microsoft has been negotiating for weeks with TikTok’s owner, Beijing-based ByteDance Ltd., and is considered the front-runner for any possible deal, according to the people. Microsoft CEO Satya Nadella spoke with President Donald Trump about the matter a week ago.

    A TikTok spokesperson said the company doesn’t comment on “market rumours,” in response to a inquiry on Dow Jones' report.

    Twitter’s market capitalisation is about $29 billion, smaller than Microsoft’s at more than $1.6 trillion. Twitter would almost certainly need help from other investors if it does buy TikTok, Dow Jones said, though it counts private-equity firm Silver Lake among its investors.

    Twitter CEO Jack Dorsey has had a failed attempt at short-form video: it shut down the Vine app in 2016, four years after acquiring it, as part of an effort to cut costs. The company has recently been under attack by President Trump, who said that Twitter and Facebook Inc. are unfairly censoring him. Both platforms blocked a video shared by accounts linked to Trump for violating their policies on coronavirus misinformation.

    TikTok plans to file a federal lawsuit as soon as Tuesday to challenge President Trump's executive order banning the videosharing service from the US as unconstitutional. TikTok responded to the ban in a blog post on Friday, saying it was “shocked” and would pursue all remedies available.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    3 Comments on this Story

    Subbu India46 days ago
    Even if Tweeter merges with TikTok, it should upto the user to accept TikTok or not.
    Reverse Swing46 days ago
    If tiktok is a security threat then why give them a month to steal more consumer data. just ban them with immediate effect like India did. in the meantime give them a month to complete the sale to a US entity. you cannot be soft with the Chinese any more.
    Sanujit Roy46 days ago
    Be vigilant on TikTok
    The Economic Times