Can a TikTok-Microsoft deal stop Trump's ban, will it cross $50 billion and be the most expensive acquisition?
It was reported that Trump was planning to order ByteDance Ltd to 'divest its ownership'. Media outlets are continuing to report that Microsoft is in talks to purchase 'TikTok's US operations'
ByteDance had brought the application named Musical.ly in 2017 and later merged it with the now popular platform TikTok. While the application became popular, there were concerns whether the Chinese government was able to use the application to garner data on US citizens. As news broke that President Trump wants to ban the video-sharing platform TikTok "as soon as Saturday" due to "national security concerns," reports dropped speaking of a possible deal between the platform and Microsoft.
"Microsoft is in advanced talks to acquire the US operations of the Chinese-owned video app TikTok, according to people with knowledge of the discussions ...so in other words, Microsoft will house your data and personal information if the sale goes through....," tweeted Wayne Dupree, host of the Award-winning Wayne Dupree Podcast. The breaking news has caused quite a stir with some focusing on data security even with Microsoft and others wondering if this deal, if it gains fruition, would be the most expensive deal ever?
Microsoft is in advanced talks to acquire the U.S. operations of the Chinese-owned video app TikTok, according to people with knowledge of the discussions— ✭ Wayne Dupree ✭ (@WayneDupreeShow) August 1, 2020
...so in other words, Microsoft will house your data and personal information if the sale goes through
It was reported by Bloomberg News (citing unnamed sources) that the President was planning to order ByteDance Ltd., TikTok's parent application, to "divest its ownership." After this became public, media outlets continued to report that American multinational corporation Microsoft is in talks to purchase "TikTok's US operations."
But it is interesting to note that Microsoft isn't the only bidder when it comes to the sale of TikTok, as it was reported by Reuters that investors of Bytedance US have also "proposed a bid for a majority stake" of the application valuing its worth at $50 billion. TikTok has offices that operate in big cities such as New York and Los Angeles and reportedly are said to have added "tens of thousands of jobs" to the US economy.
The Economic Times reported that Microsoft, though, would be a better "suitor" even if it is "large deal." The publication revealed that the TikTok-Microsoft partnership would "create a much more competitive US digital advertising market" and would be a "powerful third player" against Alphabet Inc. and Facebook Inc along with scaling up Microsoft's businesses. As many people are calling this "a deal of a lifetime" on Twitter, the publication reveals that the government will most likely sell the video-sharing app, isn't of banning it when it is at its height of popularity — news that many fans would enjoy.
If you're wondering how much the sale would be worth, the Financial Times reported that the estimated value of the video-sharing app is said to be "in the tens of billions of dollars" while the parent application ByteDance is said to be valued at $140 billion in "private share transactions." The confirmation of whether TikTok will become Microsoft's product will hopefully come soon, as of now outlets are online reporting that the deal is "in talks".
Among the top five acquisitions that have occurred, the TikTok-Microsoft one might top the charts. A quick jog of memory – Microsoft bought Skype for $8.5 billion, HP bought Autonomy for $10.3 billion, Oracle bought PeopleSoft for the same amount, Symantec bought Veritas for 13.5 billion and Facebook bought WhatsApp for $19 billion.
With the last being the highest acquisition known, and with the amount that Microsoft, ByteDance and TikTok are worth, it's no hiding that this could very well be one of the most expensive deals ever to be made in the media world with the application, after being sold, having the ability to further affect online social media presence along with the country's economy.