Microsoft is in a new acquisition talk with the latest video sharing app, Tiktok.
According to a people familiar with the matter. A deal would give the software company a popular social-media service and relieve U.S. government pressure on the Chinese owner of the video-sharing app.
Spokespeople for Microsoft and TikTok declined to comment on any potential talks. The software company’s interest in the app was reported earlier by Fox Business Network.
“We are looking at TikTok. We may be banning TikTok,” Trump told reporters Friday at the White House. “We are looking at a lot of alternatives with respect to TikTok.”
According to Bloomberg, any transaction could face regulatory hurdles. ByteDance bought Musical.ly Inc. in 2017 and merged it with TikTok, creating a social-media hit in the U.S — the first Chinese app to make such inroads. As TikTok became more popular, U.S. officials grew concerned about the potential for the Chinese government to use the app to gain data on U.S. citizens.
The Committee on Foreign Investment in the U.S. began a review in 2019 of the Musical.ly purchase. In recent years, CFIUS, which investigates overseas acquisitions of U.S. businesses, has taken a much more aggressive role in reviewing and approving deals that may threaten national security. It can recommend that the president block or unwind transactions.
It’s also possible that other potential buyers could come forward, said another person familiar with the discussions. Microsoft’s industry peers — Facebook Inc., Apple Inc., Amazon.com Inc. and Alphabet Inc. — fit the profile of potential suitors, though all are under antitrust scrutiny from U.S. regulators, which would likely complicate a deal.
A purchase of TikTok would represent a huge coup for Microsoft, which would gain a popular consumer app that has won over young people with a steady diet of dance videos, lip-syncing clips and viral memes. The company has dabbled in social-media investments in the past, but hasn’t developed a popular service of its own in the lucrative sector. Microsoft acquired the LinkedIn job-hunting and corporate networking company for $26.2 billion in 2016.
Microsoft can point to one acquisition that came with a massive existing community of users that has increased under its ownership — the 2014 deal for Minecraft, the best-selling video game ever.
Other purchases of popular services have gone less well. The 2011 pickup of Skype led to several years of stagnation for the voice-calling service and Microsoft fell behind newer products in the category. Outside of Xbox, the company hasn’t focused on younger consumers. A TikTok deal could change that, though, and give Microsoft “a crown jewel on the consumer social media front,” Dan Ives, an analyst at Wedbush Securities, wrote in a note to investors Friday.
TikTok has repeatedly rejected accusations that it feeds user data to China or is beholden to Beijing, even though ByteDance is based there. TikTok now has a U.S.-based chief executive officer and ByteDance has considered making other organizational changes to satisfy U.S. authorities.
“Hundreds of millions of people come to TikTok for entertainment and connection, including our community of creators and artists who are building livelihoods from the platform,” a TikTok spokeswoman said Friday. “We’re motivated by their passion and creativity, and committed to protecting their privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform.”
The mechanics of separating the TikTok app in the U.S. from the rest of its operations won’t come without complications. Unlike many tech companies in the U.S. where engineers for, say, Google, work on particular products like YouTube or Google Maps, many of ByteDance’s engineers work across its different platforms and services and continue to work on TikTok globally.
Chelsea Vs Norwich: Why We Didn’t Stop Scoring – Tuchel
Chelsea boss, Thomas Tuchel, has disclosed the reasons why his club side persisted in scoring goals even after halftime which...
Winning The Ballon d’Or Have Been One Of My Childhood Dreams – Benzema
Brazil Legend, Ronaldo Declares His Candidate For Ballon d’Or, Excludes Messi
Ligue 1: Reason Why Ramos Will Not Make His Much-awaited Debut – PSG
What Mbappe’s Mother Said About His Contract Extension With PSG
Champions League: Messi Reveals What They Need To Do In PSG To Play Better
Worked So Hard, Didn’t See My Family For So Long – What Usyk Said After Defeating Anthony Joshua
WAWA! Lady Du Shows Off Her New 5th Car (Photo)
South African songstress, Lady Du is sure to have a successful year as continues to leverage her hard in the...
I Love Amapiano But I Can’t Do It – Nasty C Finally Opens Up
A few days ago many South African Hip Hop artists publicly announced that they are dumping the music genre for...
See What DJ Tira Wants To Give To Anyone Who Correctly Predicts Winners Of Amapiano Awards
As all roads lead to one of the most talked-about South African music awards, “Amapiano Awards” talented disk jockey, DJ...
DJ Maphorisa Wants People To Declare Him The Landlord Of South African Music Industry
DJ Maphorisa is currently one of the top music producers in South African and he wants people and other celebrities...
You Be Will Replaced Soon – Somizi Tells Bongzie Amidst Rumours That They Are In A Relationship
South African media personality and actor, Somizi has finally reacted to the rumours peddling through social media that he has...
Gigi Lamayne Announces Her Departure From SA Hip Hop, Yet To Reveal The Next Genre She Taking Up
South African award-winning female rapper, Gigi Lamayne official made it open that she is leaving the hip hop genre for...
13-Story Residential Buiding In Taiwan Comepletly Razed Down By Fire, 46 Reportedly Dead
Taiwan: No fewer than 46 people lost their lives after a fire incident in a residential building in Southern Taiwan...