Twitter Inc has expressed interest in buying the US operations of Chinese video-sharing app TikTok, and has approached ByteDance in the hopes to work out a potential deal, as per reports.
A Reuters report said that there are doubts that the social media giant can put together financing for the deal.
Microsoft Corp has also shown interest in acquiring the US operations of the video-sharing app even as President Donald Trump signed executive orders banning Chinese apps, including TikTok and WeChat, in the country. The ban will come into effect on September 15.
The US orders to ban Chinese apps comes after India’s action against the same over security and privacy concerns.
However, Trump said that he would support Microsoft’s efforts to buy TikTok’s US operations if the government got a “substantial portion” of the proceeds.
Experts said that Twitter is unlikely to outbid Miscrosoft’s bid and will have a difficult time putting together the finance as it doesn’t have enough borrowing capacity, Reuters reported.
However, Twitter has also made a case that its bid would face less regulatory scrutiny than Microsoft’s. The social media giant added that it will not face any pressure from China as it is not active in that country.
