Microsoft is said to have entered into talks with ByteDance, the Chinese owner of TikTok, to purchase TikTok, according to The New York Times.
On TikTok, users can post short videos
User data and China
Lately, US President Donald Trump has been lashing out at TikTok. He sees the app as a threat to national security because the Chinese parent company ByteDance collects so much information about American citizens.
According to the Americans, that information may be passed on to the Chinese government. In China, domestic companies can be legally forced to hand over their users’ data.
‘Ban already today’
Trump says he will come with a ban on TikTok in the US today, according to the American TV channel NBC. “I have that authority,” said Trump.
He also said he does not support an acquisition by Microsoft. Microsoft isn’t alone in taking an interest in TikTok, Bloomberg said, relying on people familiar with the matter. For example, there would have been talked with at least one other large company.
NBC even speaks of conversations with “several other companies about a possible sale”. However, Microsoft would be the furthest with conversations and the most likely transferee.
Worth 50 billion
Earlier this week, Reuters news agency reported that ByteDance had received proposals from U.S. investment funds Sequoia and General Atlantic for the purchase of TikTok, Reuters reports.
The app would be worth $ 50 billion (over 42 billion euros).
‘Task to sell TikTok’
The powerful Committe on Foreign Investment in the United States (Cfius), which is looking at foreign investment in the US, is investigating ByteDance’s acquisition of Musical.ly in 2017, The New York Times writes. Musical.ly was rebranded as TikTok after the acquisition.
Cfius has decided to order ByteDance to sell TikTok, according to the New York Times based on insiders.
European regulators recently launched an investigation into TikTok because the privacy of children and young people would not be sufficiently protected.
TikTok will have a major competitor in the near future: Facebook will roll out its comparable service Instagram Reels worldwide in the coming months.
According to The Wall Street Journal, Facebook would offer popular TikTokkers large amounts of money to also put their videos on Instagram Reels.