In a surprising move, Microsoft has declared its intent to acquire the popular Chinese app TikTok. Soon after declaring its interest, the US government almost shut down the deal. However, after a discussion, Microsoft has been given the green light to make the purchase.
Microsoft’s Acquisition of TikTok: The Story So Far
On Friday, July 31st, The New York Times reported on Microsoft’s desire to purchase TikTok. Microsoft was interested despite the service coming under scrutiny by the US government. At the time, the government considered telling the service to separate from its parent company ByteDance, presumably to cut it off from its Chinese roots.
However, as reported by Reuters on the same day, President Trump stated that he planned to ban TikTok from the US. He also claimed he could use an executive order to ban it as soon as Saturday (August 1st). This made Microsoft hesitant to finalize the deal in light of the potential ban.
Microsoft to continue discussions on potential TikTok purchase in the United States. https://t.co/mCDeeVPzyX
— Microsoft (@Microsoft) August 2, 2020
Fortunately, Microsoft has now reported a breakthrough. After talks between President Trump and the CEO of Microsoft, Satya Nadella, Microsoft has until September 15th to make the purchase.
How Important Is This Acquisition?
If Microsoft manages to strike a deal, the company will gain significant stakes in the social media world.
As reported by Business of Apps, TikTok has been download 1.5 billion times since its release. What’s more, 49 percent of US teenagers have express interest in the app. This influence will allow Microsoft to compete with larger social media companies, such as Facebook and Snapchat.
While a deal has not been finalized yet, there’s a good chance that Microsoft will work hard to secure one. As such, be sure to watch this space for further updates as they happen.
What Is TikTok and How Does It Work?
Due to TikTok’s popularity with US teenagers, Microsoft has expressed interest in purchasing the service. Fortunately, while the negotiations were rocky over the weekend, Microsoft now has permission to pursue a deal, as long as it can secure one by mid-September.
If you’re behind on social media’s hottest new trend, check out our article explaining what TikTok is and how it works.
Read the full article: Microsoft Is in Talks to Acquire TikTok
