The American microblogging and social networking site Twitter has approached ByteDance, the owner of the Chinese app to express concern in attaining the United States operations of the video-sharing app. The people familiar with this concern told Reuters, as specialists raised uncertainties over Twitter’s capability to put jointly financing for the prospective deal.
As per reports on Saturday, it is far from sure that Twitter would be able to outbid Microsoft Corporation and accomplish such a transformative contract in forty-five days. The United States President Donald Trump has given 45 days time period to ByteDance to agree to a deal.
The news related to Twitter and TikTok being in major talks while Microsoft company is still being seen as the leader in bidding for the video-sharing app U.S. operations. This report was shared earlier by the Wall Street Journal. The tech giant Microsoft has also confirmed that the company is trying its best to negotiate a buy of TikTok’s U.S. operations after a discussion between Trump and CEO Satya Nadella.
Microsoft said in a blog post that the -“Microsoft will move quickly to pursue discussions with TikTok’s parent company, ByteDance, in a matter of weeks, and in any event completing these discussions no later than September 15, 2020,” “During this process, Microsoft looks forward to continuing dialogue with the United States Government, including with the President” as per Microsoft blog.
The main challenge is the Trump administration’s supervisory order from August 6th, which is ultimately is stopping TikTok parent company ByteDance from managing dealings in the United States. The supervisory order of Trump takes effect within 45 days. The American administration considers that the Chinese-owned app a possible safety risk, despite no proof representing any data transfer with the Chinese government.
As far as now, Twitter Inc has shown interest in TikTok’s Chinese app U.S. operations. Twitter has a marketplace capitalization USD 30 billion, and to attain this, deal the company would need to lift added capital to hold up the deal.
Erik Gordon, a professor at the University of Michigan said that “Twitter will have a hard time putting together enough financing to acquire even the U.S. operations of TikTok. It doesn’t have enough borrowing capacity”.”If it (Twitter) tries to put together an investor group, the terms will be tough. Twitter’s shareholders might prefer that management focus on its existing business”, he further added.
With all these speculations around the round, Trump said this week’s time he would support the Redmond based American multinational technology company Microsoft’s efforts to buy the video-sharing app TikTok’s U.S. operations. Trump provides support if the United States government gets a “substantial portion” of the profits. On the other hand, he also revealed that the U.S. is reportedly planning to ban the popular app on Sept 15. For this, Microsoft said that it was aiming to conclude the deal by mid-September.
For now, Twitter would not be able to outbid the Redmond based company Microsoft Corp and accomplish the deal transformative agreement in the 45 days. As per resources, the U.S. President Donald Trump has provided only 45 days time frame to ByteDance to agree to a sale.