Twitter shows interest in acquiring TikTok's US operations, Microsoft offers to buy all of it: Reports
San Francisco/ IBNS: Twitter Inc has approached ByteDance, expressing interest in buying its popular video sharing app TikTok's US operations, media reports said, adding that the deal is unlikely as tech giant Microsoft has offered to buy not only TikTok's US operations but the whole of it.
Reports said Twitter's interest in the deal wouldn't materialise as it is unlikely to pull together ample finances for the acquisition while Microsoft's deep financial pockets has put it at the forefront.
ByteDance's most popular app TikTok had record growth in the past two years, enabling penetration across all global markets. However, in the last two months TikTok faced bans as discussions over its security features grew.
After being suspended in its biggest market, India, in late June, TikTok now faces a September 15 deadline in the United States, to either sell its business to a native company or close down its operations.
While Microsoft owns professional social network LinkedIn, it has no other social media offering, and should it acquire TikTok, the deal would be a major departure for the tech giant.
On a similar note, Microsoft co-founder Bill Gates has said in an interview to Wired that social media business is no easy game and said the TikTok deal is a “poison chalice.”
“Who knows what’s going to happen with that deal. But yes, it’s a poison chalice. Being big in the social media business is no simple game, like the encryption issue,” he said.
If Microsoft ends up buying TikTok, it would enter the social media space with a massive underbase, where Facebook and Twitter are the dominant players.
While the acquisition will add diversity to Microsoft's portfolio, it can also lead to unbanning of TikTok in many major markets like India, said reports.