Twitter is interested in buying TikTok’s U.S. operations

During last weekend, Twitter approached representatives of ByteDance, the owner of TikTok platform. Reuters reported that Twitter expressed its interest in buying some TikTok activities on the US market.


Experts believe that it’s not yet clear whether Twitter would be able to outbid Microsoft and complete a deal in 45 days. The time is important as Donald Trump has given ByteDance a chance to reach an agreement on selling US part of TikTok business. Nevertheless, Reuters reported that Twitter and TikTok representatives did discuss the matter. 

Yet, there’s numbers showing that Twitter won’t be able to purchase TikTok’s U.S. operations. Twitter has a market capitalization of roughly $30 billion, which is almost the same valuation of TikTok’s assets to be sold. Twitter would need to raise additional capital to fund the deal or distribute payment of the transaction over time. Erik Gordon, a professor at the University of Michigan, says that Twitter does not have sufficient borrowing capacity to afford such a step. 



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