Twitter reportedly enters TikTok bidding war

The Chinese-owned video-sharing platform has until mid-September to find a suitable US-based buyer

Twitter is reportedly considering acquiring TikTok’s US operations, days after US President Donald Trump signed two executive orders against Chinese apps amid concerns about security and government interference.

According to The Wall Street Journal, Twitter has conducted preliminary talks into a deal with TikTok which could save the video-sharing platform from being banned in the US.

The deal would reportedly provide TikTok with more agency and less regulatory scrutiny than if it would be acquired by Microsoft, which announced its plans to approach TikTok earlier this month.

However, it remains unclear whether Twitter would be able to afford to buy the app. TikTok’s parent company ByteDance has previously valued the platform at $50 billion (approximately £38 billion), 50 times more than its roughly $1 billion (approximately £763 million) in projected revenue for 2020. 

Meanwhile, according to the BBC, Twitter's market capitalisation is estimated to be worth around $29 billion (£22bn).

This leaves Twitter far behind its potential acquisition rival Microsoft, which is valued at over $1.6 trillion.

According to the order signed by Trump: “TikTok automatically captures vast swaths of information from its users, including Internet and other network activity information such as location data and browsing and search histories”. 

“This data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information — potentially allowing China to track the locations of federal employees and contractors, build dossiers of personal information for blackmail, and conduct corporate espionage.”

TikTok has threatened legal action in retaliation to the executive order and released a statement saying that it was “shocked” by Trump’s decision. It claims the order was issued “without any due process” and “risks undermining global businesses' trust in the United States' commitment to the rule of law”.

TikTok has until mid-September to find a suitable US-based purchaser.

Alongside TikTok, the president also signed an executive order against WeChat, which faces allegations of monitoring Chinese nationals visiting the US for the Chinese government. 

"The United States must take aggressive action against the owner of WeChat to protect our national security," the order reads.

Featured Resources

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Evaluate your order-to-cash process

15 recommended metrics to benchmark your O2C operations

Download now

AI 360: Hold, fold, or double down?

How AI can benefit your business

Download now

Getting started with Azure Red Hat OpenShift

A developer’s guide to improving application building and deployment capabilities

Download now

Most Popular

SolarWinds hackers hit Malwarebytes through Microsoft exploit
hacking

SolarWinds hackers hit Malwarebytes through Microsoft exploit

20 Jan 2021
How to recover deleted emails in Gmail
email delivery

How to recover deleted emails in Gmail

6 Jan 2021
What is a 502 bad gateway and how do you fix it?
web hosting

What is a 502 bad gateway and how do you fix it?

12 Jan 2021