The report explains that why Twitter is interested in buying TikTok is not immediately obvious, given the cost of acquisition and the need for a substantial restructuring. However, Twitter’s relatively small size would likely appeal to antitrust investigators.
Private equity firm Silver Lake, a major shareholder in Twitter, is reportedly interested in helping finance a deal. However, Twitter declined to comment the Wall Street Journal.
Twitter or Microsoft?
Twitter is believed to be unable to fund a large enough bid to replace Microsoft, especially before the deadline for closing a sale set by President Trump.
Despite the discussions, Microsoft is still seen as the pioneer in negotiations to buy TikTok. Twitter has apparently argued that its offer would be preferable to Microsoft’s because it would not be under any pressure from China, as it has no current business in that country, unlike Microsoft.
Discussions between TikTok’s Chinese parent company ByteDance and Microsoft are expected to end no later than September 15, and negotiations are still preliminary.
Microsoft has said it will not provide a further update until there is a definitive outcome.