Twitter has conducted initial discussions with China-owned video-sharing app TikTok about a possible merger, according to a Dow Jones report quoting people with knowledge of the matter.
The administration of President Donald Trump has for months complained about the risks TikTok poses to U.S. national security. The potential deal with Twitter was reported as the Senate is considering legislation banning the app from being installed in federal government devices.
It isn't clear if the San Francisco-based American social network group can work out a deal with TikTok considering the ramifications of an arrangement, according to a report in The Wall Street Journal. The China technology company declined to respond when asked for comment by USA Today, as did Twitter.
Microsoft Corp. confirmed last week it had been examining a buyout of the China video-sharing platform.
TikTok will be effectively banned in the U.S. from Sept. 21 if its owner - China's ByteDance - fails to strike an agreement with a U.S. buyer for the app's business in the U.S. Microsoft chief executive officer Satya Nadella discussed the matter with the president a week ago.
TikTok, for its part, is considering options that include filing a case against Trump over an Aug. 6 executive order. Trump's move is unconstitutional because it didn't allow the China company fair treatment, according to TikTok.
Trump approved a separate executive order that restricts dealings with the China tech group Tencent. Based on that order the WeChat owner poses risks to U.S. national security.
Compared with Microsoft's more than $1.6 trillion market cap Twitter is valued at $29 billion only. Twitter won't have that much financial capacity if it decides to acquire TikTok, Dow Jones reported, even with the backing of technology private equity group Silver Lake Partners among others.
