Twitter Is Reportedly the Latest to Explore a Deal With TikTok It's very early, but would be huge if it moved forward.

By Jon Fingas Edited by Jessica Thomas

This story originally appeared on Engadget

Dado Ruvic | Reuters via Engadget

TikTok's list of suitors is extending significantly beyond Microsoft. Wall Street Journal sources say Twitter has held "preliminary talks" about a possible union with TikTok's US business. It's still very early, and might not move forward, but Twitter reportedly believes it has an advantage over bidders like Microsoft due to its size. It thinks it wouldn't face as much antitrust scrutiny if it clinched a deal, according to the tipsters.

Twitter's size could also be a drawback, however. TikTok's US business alone could be worth tens of billions of dollars, and that would be a serious obstacle when Twitter's entire market capitalization is $29 billion. It would likely need to draw on help from investors and take on a large amount of debt. And while it has been relatively successful in recent years, it suffered a loss of more than $1.2 billion in its latest quarter. The company might not be in a position to buy a behemoth like TikTok.

A deal would dramatically change Twitter's course, though. It's considered small relative to Facebook at the moment, but it would suddenly have considerably more clout — it has 186 million daily active users worldwide, but TikTok was said to have 41 million (not including its Chinese sibling Douyin) before the pandemic. Unlike the ill-fated Vine deal, TikTok would likely have to be treated more as a full-fledged counterpart to Twitter than a complement.

Whether or not Twitter makes a move, the report underscores the pressure on TikTok. President Trump has given the company until September 15th to sell its US operations if it wants to avoid a ban in the country. TikTok doesn't have much time to close a deal, and that means being open to offers it wouldn't have entertained in the past.

Jon Fingas is an associate editor at Engadget.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Starting a Business

The 5 Fears Every Entrepreneur Must Face — and Overcome

Entrepreneurship is full of fears, from failure to success. This article explores the five common fears entrepreneurs face and offers practical strategies to overcome them, turning obstacles into opportunities.

Business News

These Are the 10 Highest-Paying Jobs With the Lowest Stress, According to a New Report

From astronomer to geographer, these jobs will reportedly offer the highest paychecks with the least amount of stress in 2025.

Starting a Business

Why Startup Founders Should Look Beyond Traditional Funding and Tap Into Alternative Forms of Capital

Here's why the future belongs to those who dare to think differently about capital.

Side Hustle

This 24-Year-Old's Creative Side Hustle Surpassed $1 Million in Sales: 'Definitely Doing Something Right'

Content creator and actor Alyssa McKay saw the perfect opportunity to innovate.