TikTok is currently at the centre of fierce ‘drama-series’ owing to whether it will be banned in the U.S. or if another company will buy it. Only last week, U.S. President Donald Trump ordered firms to stop doing business with TikTok within 45 days over security concerns. To try and ease the tension and curb the ‘grief’ of many users, tech giant Microsoft took to the front line to buy the company. However, now it looks like Twitter has emerged as a possible suitor to buying TikTok.
Twitter vs Microsoft: TikTok Battle
Various claims have been rolling around the internet but one question stands. Can Twitter afford to buy TikTok from its Chinese owners? Well, we are not too sure of how much it costs to run TikTok in the U.S. However, estimates put it at tens of billions of dollars.
According to BBC, Twitter’s market capitalisation is about $29Bn. This is dwarfed by Microsoft’s at more than $1.6tn. It seems like there is no competition when it comes to who has the deeper pockets. Despite this, experts believe a possible Twitter deal would face less regulatory scrutiny than Microsoft’s.
Last Friday, Mr Trump ordered US firms to stop doing business with the Chinese app within 45 days. The Trump administration claims that the Chinese government has access to user information gathered by TikTok. However, the firm consistently denies this claim.
TikTok Sues the U.S.
In response to the U.S. president’s executive order, TikTok is threatening legal action against the U.S. They say they are “shocked” by the move.
Communications expert Sharon Koh had this to say;
“Even if the deal goes through, be it Microsoft or Twitter taking a substantial stake in TikTok, what remains to be seen is how both parties are going to move forward operationally.”