Twitter reportedly entered discussions to buy the Indian social media startup ShareChat in a bid to expand its reach in the second-largest internet market in the world, according to TechCrunch, citing sources familiar with the matter.
The U.S. internet giant, which already holds a stake in ShareChat, has offered $1.1 billion to acquire the startup and placed an additional investment of $900 million, as reported by TechCrunch.
The Indian startup has secured around $260 million in funding to date, backed by Lightspeed Partners India, Elevation Capital, and India Quotient.
ShareChat says it has more than 160 million users. The startup’s platform is available in 15 Indian languages and has managed to expand its reach to smaller Indian cities, which are referred to as “India 2” and “India 3”.
According to TechCrunch, Twitter planned to buy Moj, a short-form video platform owned by ShareChat, in an effort to expand in international markets and become a serious competitor to TikTok.
The U.S. social media company has been striving to expand in smaller cities in India and had around 75 million users in the country last month, according to AppAnnie. Twitter also recently struck a deal with Indian content and news aggregator DailyHunt to introduce Moments, which refers to curated tweets that are related to local events and news.
Earlier this month, Twitter said its revenue jumped 28% in the fiscal fourth quarter.Technical analysis: Stock dips
Twitter share price exploded higher to trade over 40% in the green. This way, the price action printed a new record high at $74.96. On a weekly basis, shares of Twitter are down more than 3% after dipping 5% today amid a wider selloff in tech stocks.Twitter monthly chart (TradingView)
Looking forward, Twitter stock price may correct further lower given a huge step forward it has made in February. The key support line is located around $56 while the long-term target is located at $88.00.Summary
Twitter has reportedly placed a bid to acquire the Indian social media platform ShareChat in an effort to expand in the Indian market and become a serious rival to Chinese video-sharing giant TikTok.
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