Twitter has had preliminary talks about a potential combination with TikTok, people familiar with the matter told the Wall Street Journal. This could lead to a takeover of TikTok's US operations, the report said.
Microsoft is still considered the frontrunner to buy TikTok's business in the US, according to the paper's sources. Twitter is seen as a long-shot bidder, given that it is much smaller than Microsoft and would have a harder time paying for the deal. Microsoft also is further advanced in negotiations.
Microsoft said earlier it was negotiating for TikTok’s operations in the US, Australia, Canada and New Zealand. It faces a 15 September deadline to reach a deal before a US government order takes effect banning TikTok use in the US.
Because it is much smaller, Twitter has reasoned that it would be unlikely to face the same level of antitrust scrutiny as Microsoft or other potential bidders, the report said. However, it would also face more difficulty raising financing for the takeover, which is expected to reach into the billions of dollars.
