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Video-sharing platform TikTok has been at the centre of fierce debate in recent weeks and takeover talk. It is also said to be uncertain whether the San Francisco-based company has the means to finalize a deal by the time President Trump's executive order restricting the use of TikTok in the USA goes into effect.
But experts believe a possible Twitter deal would face less regulatory scrutiny than Microsoft's. Twitter started making a consistent profit in the past couple of years, but reported a $1.23 billion loss in the latest quarter.
Shares in Naspers [JSE:NPN] fell in early trade on Tuesday morning, following a sharp share price decline on Friday after US President Donald Trump issued an executive order to have Chinese apps TikTok and WeChat banned in 45 days.
The executive order stated that TikTok posed a national security risk, given its relationship with a Chinese firm and local laws in the country that allow for the seizure of user data.
Trump has given Microsoft until September 15 to put together a blueprint for an acquisition that safeguards the personal data of Americans stored on the short-video app, and he has issued an order to ban it if there is no deal by then.
Trump has indicated that he supports a company such as Microsoft acquiring TikTok to avoid an outright ban of the app.
That's one major difference - Twitter's TikTok deal would only buy up the USA operations, while the Microsoft proposal would also buy TikTok's operations in Canada, Australia and New Zealand as well, according to a KPIX/CNN report.
"It will also take a tumultuous effort for both organisations to meander through the political sensitivities", she added.