The rumours are making rounds that Microsoft may acquire TikTok to keep the popular short video sharing app operational in the US.
As the US president Donald Trump is reportedly planning to ask ByteDance to sell its US operations, Microsoft has emerged one of the potential buyers to acquire TikTok’s US operations.
The popular short video app is in hot water for sometime now. After India decided to ban TikTok last month, the other countries are also evaluating similar options to shut the door for TikTok over the growing concerns about people’s data privacy. While TikTok is leaving no stone unturned to convince authorities to revoke the ban, they are yet to taste any success.
The report about the acquisition of TikTok by Microsoft in the US is still unconfirmed. However, the news is spreading as wild fire after Fox Business Network’s Charles Gasparino reported about it first.
Citing his banking sources, Gasparino has said that Microsoft is in talks with ByteDance to buy TikTok’s US operations. He also added that Microsoft is just one of those American companies that are evaluating TikTok acquisition.
It’s quite unclear whether Donald Trump can direct a non-American company to sell its US assets and operations.
Dazeinfo earlier reported that selling TikTok’s international operations is one of those few options ByteDance is exploring currently. As the situation is becoming tougher with each passing week, the US investors in TikTok are also willing to buy its US operations to end the ongoing trouble for TikTok in the US.
We also reported that the TikTok’s current valuation is estimated to the tune of $25 billion. However, the figure could go up as high as $40 billion considering the enormous growth and exploded adoption of TikTok worldwide in a very short span of time.
For Microsoft it’s definitely a strategic move as company is yet to foray into the social media space. The acquisition of LinkedIn by Microsoft in 2016 was seen as move by the company to strengthen its presence in B2B segment of social media. However, the acquisition of TikTok could be the new beginning for Microsoft.