Twitter has reportedly shown its interest to buy the US operations of Tiktok after Microsoft. Twitter comes up the latest contender showing interest to buy the short video maker app. Now, we can say Twitter planning to buy Tiktok after Microsoft.
According to a report by the Wall Street Journal, Twitter’s approach to ByteDance is only a preliminary approach and maybe Twitter would not be able to pull the finances due to its rivalry Microsoft’s bid.
Is Twitter Planning to buy Tiktok?
Twitter has a much smaller business and economic value as compared to Microsoft which has large capital. Twitter might have to borrow a large amount of loan to, analysing that Twitter has a market capitalization of $29 billion whereas Tiktok US would cost around $10 billion so there are fewer chances that Twitter would buy Tiktok US operations.
In the financial point of view, Twitter is unable to buy a giant such as Tiktok because Twitter had already suffered a loss of $1.2 billion in the last quarter and the deal with the Tiktok might be very costly for Twitter.
In 2012 also Twitter has acquired the Vine, a short video maker app and it was a big flop and has to shut it down after four years.
Who will buy Tiktok?
Twitter is not the sole company that has shown interest to buy Tiktok in US Facebook, Google, Microsoft, Apple are said to be in the competitor list to buy Tiktok US but Microsoft has openly accepted that they are a potential buyer.
The whole thing to buy Twitter US operations started after President Trump had signed an executive order to ban Tiktok after a period of 45 days if any American company doesn’t buy it, maybe we will see more competitors in the remaining days.
May be Twitter will pull off their decision to buy Tiktok due to less financial power than other major tech competitors on the list.