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Microsoft Bids for TikTok
Microsoft was exploring a takeover bid for TikTok’s American operations. On August 2, 2020, Satya Nadella, Microsoft’s CEO, and Mr. Trump discussed over this matter, which has allowed Microsoft chief time to flesh out the potential acquisition.
Fremont, CA: In late July, President Trump stated that the social media platform, which his administration considers a national security risk, could be banned in the US due to its Chinese ownership.
While this was taking place, Microsoft was exploring a takeover bid for TikTok’s American operations. On August 2, 2020, Satya Nadella, Microsoft’s CEO, and Mr. Trump discussed over this matter, which has allowed Microsoft chief time to flesh out the potential acquisition.
The conclusion of the conversation between the US President and CEO Nadella Microsoft has six weeks to seal a deal for TikTok. The company claims that it has 100 million users in the U.S. Microsoft stated that it would act rapidly to generate a deal Beijing-based ByteDance, poised to wrap it up by Sept. 15. The security review would be left up to Microsoft, and the company has guaranteed to keep all American users’ data within the U.S. and cut off any connections to technology that remain in China.
How much would TikTok Cost Microsoft?
Both companies ByteDance and Microsoft have shown interest in negotiating a deal. If the 6-weeks pass, and there is no deal, Microsoft would just step back. Although the company would lose out on a social media platform that has already gained huge popularity, it will not lose as much as ByteDance. TikTok, after 6-weeks, would be banned in the US, and the company will have to divest its US assets. This could work, but making sure that it cuts off its data would be a big task, and without having a champion in the US, TikTok could be fated. The company's value is steep, and it will be interesting to see what TikTok will cost. In the last week of July, a group of investors, including General Atlantic and Sequoia Capital, floated a $50 billion bid for TikTok. Right now, TikTok is not a public company, but Microsoft is active in online trading across the globe.