Twitter Wants a Try

The fate of social media app Tik Tok is not something I thought I would be writing about much. But its level of popularity combined with its skepticism from Donald Trump has made it a hot, yet coveted topic. We have already talked about Microsoft trying to buy it, but now Twitter (TWTR) is rumored to be working itself into the talks. Twitter is a significantly smaller company than Microsoft, so the rumors have put the social media platform in a position to merge with Tik Tok’s parent company ByteDance, rather than acquiring it. I like this move more than the Microsoft one, because this can really push twitter in the right direction as it is known that the company struggles to create revenue as its only substantial source is from un-favored ad promotions. A merger with Tik Tok could lead to a different revenue stream or to a heightened liking for their ads. I also feel that Twitter would have a better opportunity to maintain the popularity of Tik Tok, based on the type of audience Twitter receives. I expect Twitter to trade high this morning as the rumors become slightly more solidified. As of August 6th, Donald Trump gave ByteDance 45 days to decide the fate of the young app, so more news will surely come out soon.

-Darnel Shillingford

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