Microsoft Planning To Aquire TikTok; Likely To Be A Billion-Dollar Deal

TikTok has been in the headlines for quite some time now. The short video app was recently banned in India along with 58 other apps from China. And now, POTUS has officially confirmed that the US Govt is also planning to ban the platform in the entire US.

TikTok's parent company ByteDance is a Chinese entity and it's speculated that the platform has been using user-information with the PRC (people republic of China).

In a media statement, Trump said; We're looking at TikTok. We may be banning TikTok, We may be doing some other things. There are a couple of options. But a lot of things are happening, so we'll see what happens. But we are looking at a lot of alternatives with respect to TikTok.

According to the recent development, the computer software giant Microsoft is already in motion to acquire the operations of TikTok, which could possibly change the fate of TikTok and it might even come back to India.

Do note that, TikTok is one of the most active video-based apps with over 2 billion downloads and 800 million active users. The entity is currently valuated at 50 Billion US dollars and Microsoft has to shell out a large chunk of money to make this happen on top of that, ByteDance has to accept the deal offered by Microsoft.

If everything goes as expected, this acquisition could complete as early as the coming Monday and it will come under the leadership of Satya Nadella. This is expected to be one of the most expensive app purchases in the last few years, and with this Microsoft can gain millions of mobile user-base.

If this deal does not take place, then TikTok is likely to get banned in the US as well, which could be a huge blow for the company and it could bring down the valuation of the brand.

Source