Written by: Frank Raj
US president Donald Trump has said that he will ban Chinese app Tik Tok. Trump cited the issue of National security as a reason to ban Tik Tok, as well as some other social media apps.
He initially told reporters that he is not in support of Microsoft buying Tik Tok, according to NBC news.
However president Trump did a U-turn at White House on August 3. According to the New York times, the president expressed his support for a Microsoft takeover of Tik Tok.
Speaking at the White House, Trump said that he would not mind if Microsoft or another secure “very American” company bought it instead. however, he ruled against letting China control it for “security reasons”.
Trump also gave a deadline of Sept 15 for any potential deal to happen. Adding an expectance clause that the US should get a very large percentage of the eventual price the two companies settle on, if it goes through; because “we are making it possible”, he said.
According to financial times, the current range under discussion as to the worth of Tik Tok is between US$15 billion to US$30 billion.
With the acquisition of Tik Tok, Microsoft could be more concentrated on consumer technology, which they haven’t done in recent years.
Microsoft has been consistent in it’s strategy of acquiring “Networked Assets” with many users, including LinkedIn, Amy hood, according to Microsoft chief financial officer in 2018.