TikTok Corner – Twitter Wants In
For a number of weeks to come, we are most definitely going to feature ByteDance’s Tik Tok.
The past 7 days, we have two things. There is a definite window for ByteDance to sell their US Operations. Also, there is a new player in the purchase of TikTok’s US Operations.
Donald Trump gave TikTok owner ByteDance 90 days to divest itself from the U.S. arm of its business in an order signed Friday evening.
The move represents an escalation of the Trump administration’s ongoing efforts to undermine Chinese financial interests in the U.S., as part of a year-long trade dispute with the Asian country. The new order joins another one issued earlier in August that gave U.S. companies 45 days to cease doing business with ByteDance (as well as WeChat owner Tencent).
Trump had previously threatened to ban TikTok if a sale couldn’t be completed by mid-September.
The new order notably surfaced just 80 days ahead of the Nov. 3 elections in the U.S., meaning the 90-day deadline will expire after Americans have cast their vote for the next president.
Also, joining Microsoft in the race to buyout TikTok’s US Operations is Twitter as first revealed by Reuters.
The problem for Twitter, according to Reuters, will be money. Twitter is not worth nearly as much as Microsoft. If Twitter wants to outbid the company behind Windows, Office, and Xbox, they need to get their financial muscle even firmer.
Reuters named private equity firm Silver Lake as one potential partner that could help Twitter seal the deal. Finances aside, Twitter acquiring TikTok would make sense in the same way that it made sense for Twitter to buy Vine back in 2012. Though, we all know how the Vines-Twitter marriage ended.
FYI, ByteDance investors value TikTok at $40 billion.