Microsoft Corporation is looking forward to buying the U.S. business of TikTok. Both parties are in an advanced stage of their deal, as per the sources.
Tiktok is a video-sharing app owned by the Chinese company – ByteDance Ltd. in 2017 ByteDance bought Musical.ly Inc. and merged to form Tiktok. Tiktok is looking for new changes in its business structure because of the U.S. government’s national security concerns.
This deal, if cracked successfully, will be a win-win situation for the companies. After the deal, Microsoft is likely to become a major player in the social media sphere. While Tiktok and ByteDance Ltd. will get ease from the U.S president’s target.
For a long time, U.S. has been investigating potential national security risks due to Tiktok and finally, on Friday U.S President Donald Trump announced “as far as TikTok is concerned, we’re banning them from the United States.”
TikTok’s inbuilt features combined with fun, goofy videos made the app very much popular in the U.S, sweeping away the U.S developed apps like Facebook and Snapchat. However, its Chinese ownership raised potential threats like censorship of videos and sharing of important data with Chinese officials.
Several other countries across the globe are also taking strict actions against Tiktok due to its potential concerns. India also banned TikTok with dozens of other Chinese apps due to its possible privacy concerns and ongoing tensions between the two countries.
Meanwhile, Microsoft Corp. showed its interest in the Chinese app. In regards to this matter, Microsoft CEO Satya Nadella and President Donald J. Trump had a conversation on 2nd August.
Microsoft is supporting the raised concerns, however, it is not stepping back from the planned deal.
Following the conversations, on 3rd August, President Donald J. Trump said he is ready to approve the deal of between Microsoft Corp. and the Chinese app TikTok, but only if the government receives “a lot of money” in return.