Microsoft is in advanced talks to acquire the United States operations of the Chinese owned video app TikTok, according to people with knowledge of the discussions, in a deal that would be a concession to White House pressure and make the software giant a major player in social media.
A sale to Microsoft, likely for billions of dollars, would be a win for both TikTok and its parent company, Bytedance Ltd., where executives had feared that the U.S. government would force device makers to take TikTok out of their app stores, according to another person familiar with the matter.
As U.S. president, Trump previously has issued three orders stopping M&A deals involving foreign parties, through the inter-agency Committee on Foreign Investment in the United States.
A deal could be completed by Monday, according to people familiar with the matter. The talks involve representatives from Microsoft, Bytedance and the White House. Talks are fluid, and a deal may not come together.
In a statement to Media, a TikTok representative said: “While we do not comment on rumors or speculation, we are confident in the long-term success of TikTok. Hundreds of millions of people come to TikTok for entertainment and connection, including our community of creators and artists who are building livelihoods from the platform. We’re motivated by their passion and creativity, and committed to protecting their privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform.”
A group of ByteDance investors including Sequoia and General Atlantic, who want to acquire control of TikTok amid the concerns over its Chinese ownership, have valued TikTok at about $50 billion,
Source- Reuters, Wall Street Journal, CGTN