The future of TikTok is uncertain in the U.S. after President Trump announced the ban of various Chinese apps that could threaten national security.
Last week, after Trump announced the possible ban, Microsoft started talking to ByteDance’s representatives to reach a deal on TikTok. Allegedly, the US-based company is the front-runner for a potential agreement.
This week comes with a plot twist: Twitter may be a competitor to Microsoft. The social media outlet is said to be discussing a future agreement with TikTok. Compared to Microsoft, Twitter is seen as a long-shot buyer, given that it's smaller than Microsoft, and payment towards ByteDance could become a difficult mission.
Although the deal could be beneficial for Microsoft, experts believe that TikTok could be a handful for Bill Gates and his company. From their point of view, Microsoft must make sure that the potential deal doesn't overshadow the Commercial Cloud narrative, as this kept the company on top of the game for the past five years, also rising the share price by 340%.
Moreover, TikTok's popularity could fade and face difficulties when targeting the older population’s attention.
In the past three months, Microsoft stocks went up 18%, while USA30 added 13%. Twitter stock fell more than 1% on Friday but gained more than 3% during today's pre-market session.
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Sources: marketwatch.com, finance.yahoo.com, wsj.com
