Could Microsoft become TikTok’s new parent company? Microsoft confirmed that it has held talks with Chinese company ByteDance to acquire its app TikTok in the U.S. Microsoft said it will keep working with the U.S. Government on an agreement and it expects to conclude talks by 15 September.
If it were to complete the deal, Microsoft could simultaneously resolve a recent controversy in Washington (President Trump days before said he planned to ban the app in the country over national security concerns) and gain power in consumer technology. The two companies have looked at Microsoft purchasing TikTok in the U.S., Canada, Australia, and New Zealand, and Microsoft may give other American investors to get involved in the purchase.
President DonaldTrump only agreed to allow MicrosoftCorp to negotiate the acquisition of the famous TikTok short-video app if it could secure a deal within 45 days.
The move represented an about-face for Trump and prompted the U.S. Tech giant to announce their interest in a lucrative social media deal that could further inflame ties between the US and China. Trump said he planned to ban TikTok on Friday.
The proposed acquisition of TikTok, which boasts 100 million U.S. users, would offer Microsoft a rare opportunity to become a significant competitor to social media giants such as Facebook Inc and Snap Inc. Microsoft also owns a professional social media network LinkedIn.