Microsoft had talks with China owner ByteDance, one person close to the case, to buy TikTok mobile video sharing app. This person described the discussions as being ongoing for some time, instead of brand new.
A TikTok takeover could allow Microsoft to concentrate more on consumer technology by leaving mobile hardware, fitness hardware, and eBook markets than was the case in recent year with Microsoft’s acquisition of corporate apps. In 2016 LinkedIn was acquired by Microsoft for 27 billion dollars. In 2014 it paid $2.5 billion to buy Mojang, which is a common Minecraft title for young users who are the core audience of TikTok in the United States.
In 2017 TikTok was launched by Chinese company ByteDance. During the coronavirus pandemic, the app became more popular and Sensor Tower reported 2 billion downloads in April. Facebook and Snap are among the competitors.
Investors from ByteDance who are seeking to take over TikTok worth $50 billion, Reuters reported earlier this week.
TikTok ‘s rise in the U.S. has caused Trump to review the proposal. Treasury Secretary Steven Mnuchin said earlier this week it had been approved by the Foreign Investment Committee of his department in the United States.
“We’re looking at TikTok, we may be banning TikTok, we may be doing some other things, there’s a couple of options but a lot of things are happening, we’ll see what happens,” Speaking on Friday at the White House South Lawn, President Donald Trump said. “We are looking at a lot of alternatives with respect to TikTok.”
“While we do not comment on rumors or speculation, we are confident in the long-term success of TikTok,” TikTok said in a statement Friday.