TikTok Business Model – What Makes It So Popular
Twitter will try to buy American part of TikTok business
Twitter reached out to Chinese TikTok owner ByteDance, expressing interest in buying the US portion of its business.
TikTok app has been at the center of fierce takeover debate and talk in recent weeks.
Donald Trump issued a decree banning transactions between US companies and ByteDance for 45 days due to concerns about national security threats.
Initially, only Microsoft claimed to buy part of TikTok, but now Twitter is involved in this process..
It remains to be seen whether Twitter can afford to buy TikTok from its Chinese owners and whether it will be able to close the deal within a 45-day window. Wall street journal.
The cost of the TikTok deal is unknown, but experts estimate it in the range from 15 to 50 billion dollars.
Apparently, the potential agreement will require third-party investor support, as Twitter has a market cap of around $ 29 billion. Microsof capitalization is over $ 1.6 trillion.
At the same time, market participants believe that Twitter will face less regulatory attention than the Microsoft deal.
Here are the pros and cons of a U.S. company buying TikTok
The Trump administration claims the Chinese government has access to confidential information from American users collected by TikTok. Social media representatives deny all Washington accusations.
In response to the executive order of the President of the United States, TikTok threatened legal action, stating that it was «shocked» Trump's decision.
Beijing is also outraged actions of Western colleagues. Representative of the Ministry of Foreign Affairs Wang Wenbin told reporters on Friday that the United States «use national security as an excuse and use state power to infringe on foreign companies». He added that the move is purely political and undermines the country's image and credibility..
The US government also announced a ban on business relationships with the owners of the Chinese messenger WeChat..
Donald Trump said last week that he would support Microsoft's efforts to buy TikTok's US operations if the government gets «significant part» proceeds.
He set a deadline for closing the deal – September 15.
Microsoft intends to conduct TikTok business in the United States, Australia, Canada and New Zealand.
American banks prepare delisting of 500 exchange-traded products in Hong Kong