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Microsoft Confirms That They’re in Talks to Buy TikTok, Deal To Be Concluded by September 15th

George Kamau by George Kamau
August 3, 2020
in News
Reading Time: 3 mins read
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TikTok

TikTok

UPDATE: Microsoft has confirmed that they are in talks to buy TikTok in the US. In a blog statement, the tech giant has said that they will keep working with the US government on that proposed deal and hopes the talks will conclude by September 15th.

Microsoft plans to not only buy TikTok in the US but also Canada, Australia and New Zealand.

We are yet to know what happens to other countries that still have TikTok such as Africa and Europe. TikTok already has quietly made London its main hub in European.

Microsoft will probably offer other American investors to get involved in the acquisition

2020 is wild. TikTok, an app popular with Gen Z and Millenials has hard a tough time especially with concerns by the U.S about China’s access to data on Americans.

TikTok was under investigations citing national security risks. Most US government officials have banned employees from using the app.

India already banned the app in late June.

Earlier today, it was announced that Donald Trump had made plans to order China’s ByteDance to divest its ownership of the popular U.S.-based music-video app TikTok, according to people familiar with the matter.

Trump to order China’s ByteDance to sell TikTok U.S. operations, an announcement is imminent, sources tell me, @jendeben and @JenniferJJacobs

— Saleha Mohsin (@SalehaMohsin) July 31, 2020

1) Does he have that power?
2) Can he direct to whom?
3) Can someone do an duet with Trump’s most recent press conference https://t.co/8A3falNfBZ

— Lance Ulanoff (@LanceUlanoff) July 31, 2020

According to this tweet, it looks like a US company would be buying a US portion of the app.

One name in the mix was Microsoft.

CONFIRMED; sources say @Microsoft in talks to buy https://t.co/1q4Y8HRbjG

— Charles Gasparino (@CGasparino) July 31, 2020

The Trump order would require ByteDance to cede majority control of TikTok, which investors have recently valued at $50 billion.

Your Tik Tok sale price is your childhood address + billion

— Alex Kantrowitz (@Kantrowitz) July 31, 2020

It’ll be interesting to see how rival social media apps take this. Facebook is already rolling out Reels to markets TikTok had popular use such as India.

TikTok would join LinkedIn as part of the social networks owned by Microsoft but where would it fit in its overall business model – that’s the question bothering tech pundits.

Microsoft buying TikTok? well, that would it shut down in 18 months

seriously Microsoft, stop trying to be one of the cool kids. if you can't even keep Cortana running on the Invoke, or keep Mixer going, what are you going to do with a video service?

— Mary Branscombe (@marypcbuk) July 31, 2020

This deal comes days after tech giants Apple, Amazon, Facebook and Google participated in this week’s anti-trust hearings which Microsoft was not present and it’ll be interesting to see Satya Nadella pull this off.

TikTok already has an American CEO, Kevin Mayer who was previously a top Disney executive.

https://twitter.com/kevinroose/status/1289258076659310593

But is selling the app to an American company stop it from leaking user’s data?

Apparently, no. Tiktok could still legally sell the data to a broker, who could then sell it to the CCP.

People shared their reactions on Twitter

https://twitter.com/pierce/status/1289257378794237953

AMERICAN teen dance memes belong on AMERICAN data-harvesting platforms

— Matt Pearce 🦅🇺🇸 (@mattdpearce) July 31, 2020

influencers now looking up how to TikTok from a Surface https://t.co/hQTv9xysxA

— Alex Konrad (@alexrkonrad) July 31, 2020

https://twitter.com/TaylorLorenz/status/1289269878583488512

Microsoft buying TikTok's US operations wouldn't make much sense for the company. https://t.co/i2ZxYKy66H

— Tom Warren (@tomwarren) July 31, 2020

me thinkin of tiktok's target audience https://t.co/Ss5NH9jBPh pic.twitter.com/cDbGnzfIwB

— Ryan Mac 🙃 (@RMac18) July 31, 2020

Can't wait to join your professional network on TikTok https://t.co/rG6dCn0W5a

— Karissa Bell (@karissabe) July 31, 2020

https://twitter.com/zck/status/1289258600519458818

Seems to me that Bytedance/TikTok may have dodged a bullet if the only fed action is divestment, instead of ban.

— Dan Primack (@danprimack) July 31, 2020

welp https://t.co/rG6dCn0W5a

— Karissa Bell (@karissabe) July 31, 2020

I guess Microsoft was bummed they didn't have a product with user privacy controversy so they didn't get an invite to the hearing?

— hushky.io (@0xHushky) July 31, 2020

https://twitter.com/panzer/status/1289263309615558656

Maybe this is Satya's way of making sure he's invited to the next Congressional hearing.

— Dan Primack (@danprimack) July 31, 2020

If $MSFT swoops in at the last minute and buys Tik Tok, we should hereby declare Satya Nadella the GOAT.

Imagine $GOOG (has been trying to build a social product for 2 decades) and $FB (copies every latest social product) both sitting on the sidelines on this one. Brutal. https://t.co/JXMS266cfG

— Romeen Sheth (@RomeenSheth) July 31, 2020

🙃🙃🙃 pic.twitter.com/IM5uyXeG4z

— Tom Warren (@tomwarren) July 31, 2020

TikTok XP Media Center Edition

— alex (tired) (@alex) July 31, 2020

The administration forcing a sale of TikTok looks sketchy, but if a giant tech company will buy that app, I'd much rather see it be Microsoft than Google or, worse yet, Facebook. https://t.co/mgd0XHN8fk

— Rob Pegoraro (@robpegoraro) July 31, 2020

Looking forward to TikTok Enterprise Edition. https://t.co/LSiye4EUdN

— Aaron Levie (@levie) July 31, 2020

https://twitter.com/kevinroose/status/1289266113000300544

If rumors are true, nice timing for Microsoft who was not part of the antitrust hearing this week be able to make a multibillion dollar bid for Tiktok.

But could a consortium of investors like Sequoia and General Atlantic be a better viable option?

— Sally Shin (@sallyshin) July 31, 2020

https://twitter.com/hshaban/status/1289269612899516416

This is a developing story..keep refreshing for new updates

Tags: MicrosoftTikTok
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George Kamau

George Kamau

I brunch on consumer tech | [email protected]

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