Article Hero

Twitter vs. Microsoft: who will buy TikTok?

1597063825.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Twitter has begun negotiating over TikTok.

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.  

Read more about the latest market deals on CAPEX.com!

Sources: marketwatch.com, finance.yahoo.com, wsj.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.