Microsoft has reportedly entered talks to buy TikTok’s US operations, following threats that Donald Trump could force the company to divest its US interest.
[box]Updated 8/2: Microsoft on Sunday confirmed that it has held talks with Chinese technology company ByteDance to acquire its trendy social app TikTok in the U.S. Microsoft said in a statement that it will keep working with the U.S. government on a deal and that it intends to conclude talks by September 15.[/box]
Reports came in that President Donald Trump could be planning to order China-owned ByteDance to divest itself of ownership of TikTok’s US operations. Immediately followed by other reports stating that US tech giant Microsoft had entered talks to buy the stake.
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News of the talks was first reported by Fox Business Network’s Charles Gasparino on Friday and later by the New York Times and Bloomberg.
“My banking sources say they are looking at it; can’t guarantee a purchase but this thing is being shopped and one of the stops has been @Microsoft,” Gasparino tweeted.
My banking sources say they are looking at it; can't guarantee a purchase but this thing is being shopped and one of the stops has been @Microsoft https://t.co/9U9LKHBExL
— Charles Gasparino (@CGasparino) July 31, 2020
ByteDance Ltd 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. Many are expecting ByteDance to launch its IPO in 2020 as a result of its fast success. However, as the app became more popular, US officials soon grew concerned about the potential risk of having the Chinese government use the app to gain data on US citizens.
Microsoft established its presence in the business of social media in 2016 when it acquired professional networking LinkedIn. It is not clear where TikTok would fit in Microsoft’s business. But one thing is for sure, the fastest growing social media app is a gem that many would love to call theirs.