Microsoft Corp. is reportedly in advance talks to acquire the US business of Chinese Bytedance-owned app TikTok. The interesting part is, these developments surfaced amid the US govt. considering banning the app due to national security concerns, as India has already done this earlier for the same concern.
According to the Wall Street Journal report, Satya Nadella-led technology giant Microsoft may announce the acquisition by Monday. The talks reportedly involve representatives from Microsoft, Bytedance, and also the White House.
Notably, Trump told reporters Friday at the White House that they are looking to ban the TikTok. In his statement he said;
“We may be banning TikTok. We are looking at a lot of alternatives with respect to TikTok.”
If the deal materializes, it would be a concession to Trump’s govt pressure and make Microsoft a major player in social media. However, many people believed that any transaction regarding this could face regulatory hurdles.
Remember? ByteDance bought Musical.ly Inc. in 2017 and merged it with TikTok, becoming the first Chinese app to get the massive hit in the U.S.
But as it’s popularity increase, U.S. officials grew concerned about the potential for the Chinese government to use the app to get U.S. citizens’ data.
TikTok has over 2.3 billion downloads worldwide and recently valued between $30 billion and $50 billion, according to the reports. While there is clarification as to where TikTok would fit into Microsoft’s business since the tech giant’s major presence in the social networking as of now is LinkedIn, if this deal is successful, Microsoft may take a big leap in the sector.
Interestingly, Trump administration could soon announce a decision ordering TikTok parent ByteDance to divest its ownership in the app, as per several reports.
Also, lots of reports are floating on the internet that suggests many US tech giants and financial firms being interested in buying or investing in TikTok.