Nextapparently also has negotiated with the TikTok parent ByteDance to purchase the US short video service business. According to the unspecified sources of the Wall Street Journal, the talks have so far been in an early stage – negotiations with Microsoft are said to be further advanced.
Therefore, it should be uncertain whether Twitter will actually try to close an acquisition. In addition, due to its size, it should be more difficult for Twitter than for Microsoft to finance the purchase. Twitter’s market capitalization is currently around 29 billion dollars, while Microsoft brings it to more than 1.6 trillion dollars. CNBC estimates the value of the transaction, depending on the size, at 10 to 30 billion dollars.
However, Twitter should also see an important advantage in its size. According to the company, a deal with TikTok should have better prospects of regulatory approval. For Twitter, it would also not be the first foray into short videos. In 2012, the short message service swallowed start-up Vine for $ 30 million, only to close it four years later.
A sale of TikTok is intended to prevent the US government from banning the Chinese company’s business in at least the US. There, TikTok is accused of collecting unauthorized data about its users and passing it on to the Chinese government, for example to use it for espionage. The Trump administration sees this as a threat to national security and wants to prohibit all US citizens by decree from carrying out transactions with ByteDance or other subsidiaries of the TikTok parent company.
So far it has only been confirmed that Microsoft is interested in taking over TikTok’s businesses in the USA, Great Britain, Australia and New Zealand. Allegedly, the Redmond-based company should also consider buying the entire company as an alternative in order to secure the Indian and European markets.
TikTok announced, however, that it would take action against President Trump’s decree, which amounts to a ban on the TikTok app. “We are shocked by the latest executive order that was issued without a due process,” the social media company wrote in a blog post. “We will use all legal remedies available to us to ensure that the rule of law is not thrown overboard and that our business and our users are treated fairly – if not by the government, then by the US courts.”
TikTok has been trying for almost a year to work with the US government to find a constructive solution to their concerns. “What we encountered instead was the government disregarding the facts, dictating the terms of an agreement without going through the usual legal process, and trying to meddle in negotiations between private companies.”
Slack collaboration platform: work efficiently – no matter where
Before COVID-19, remote work was almost unthinkable for many companies. Today they have recognized that it can work very well if the framework conditions are right. In this webinar you will learn how you can optimally react to the changed working conditions with the Slack collaboration solution.