Microsoft Seeks To Buy TikTok Before September Ban
Microsoft is reportedly in talks to purchase video sharing app, TikTok, in what could become its ‘deal of the decade’. The news comes as CEO, Satya Nadella, continues negotiations with government officials and the company – worth US$50 billion – before TikTok is banned in the US on September 15.
Trump has warned a “substantial portion” of TikTok’s sale price should also be diverted to the Treasury for “making it possible for the deal to happen.” Analysts question how this may be facilitated given current laws and guidelines.
The news comes after Trump warned TikTok would be banned in the US in mid-September unless “Microsoft or somebody else – a big company, a secure company, very, very American company” buys it.
Microsoft is reportedly seeking to buy TikTok’s operations across the US, Canada, New Zealand and Australia.
TikTok has received global concern over data privacy from its Chinese parent company, and has been banned in countries like India.
Commentators question whether the US ban will cause a ripple-effect for other Chinese apps operating within Western countries, such a WeChat in Australia.
Market consensus on the validity of TikTok’s US$50 billion worth is also mixed, however, the the proof will be in the price Microsoft is willing to pay.
In the United States, TikTok boasts 100 million users alone.