Twitter has held preliminary talks about a potential combination with video-sharing app TikTok, the Wall Street Journal reported on Saturday, citing sources.
The report said it was unclear whether Twitter will pursue a deal with TikTok, which would involve the video-sharing app's US operations.
Microsoft has been negotiating for weeks with TikTok’s owner, Beijing-based ByteDance, and is considered the front-runner for any possible deal, the WSJ sources said.
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—and the software giant is further advanced in negotiations.
Microsoft confirmed on August 2 that it has held talks with ByteDance to acquire TikTok in the US and it intends to conclude the talks by September 15.
Microsoft confirms talks to buy TikTok, aims to finish deal by Sept 15
Microsoft's statement comes two days after media reports said that it was interested in acquiring the app. Soon after those reports emerged, US President Trump said that he opposed the idea and would move to ban the app in the US.
The two companies have provided notice of their intent to explore a preliminary proposal that would involve a purchase of the TikTok service in the United States, Canada, Australia, and New Zealand and would result in Microsoft owning and operating TikTok in these markets.
Twitter would almost certainly need help from other investors if it does buy TikTok, the WSJ report said, adding the company has far less financial firepower than other major tech players, though it does have high-powered investors such as private-equity firm Silver Lake.
Twitter started making a consistent profit in the past couple of years but reported a $1.23 billion loss in the latest quarter. Twitter reported $7.8 billion in cash and short-term investments as of June, compared with more than $136 billion for Microsoft.
If a deal does ultimately come together, it would reshape Twitter, the report said. Although Twitter allows users to upload videos, the app’s focus is on short messages of text and images.
ByteDance threatens to sue US government for TikTok treatment
