17 August 2020
Initially, there were reports that Microsoft was in talks to acquire the US operations of TikTok. Later, Microsoft came out and confirmed that it is indeed planning acquisition and therefore looking to have a converse with President Trump on the matter. But it appears, Microsoft’s all efforts are slowly going in vain as President Trump does not want TikTok to operate in the US in any case. In fact, according to a fresh report, Trump has signed an executive order already to ban TikTok in 45 days.
Meanwhile, according to the Financial Times, Microsoft is also seeking to buy TikTok’s entire global business and not just the American operations. This means Microsoft has plans to acquire the short-video app maker’s whole business, including the one in India where the app is banned already.
Microsoft had already confirmed that once it gets the approval, it will take control of TikTok’s operations not only in the US, but in Canada, Australia, and New Zealand as well.
But the fresh report from FT claims that Microsoft has a rather bigger objective. Microsoft is reportedly looking to close a deal with TikTok with $50 billion that would grant it to acquire the latter’s operations in North America, Australia, and New Zealand. According to FT, Microsoft is also considering other aspects that mainly include acquiring TikTok’s operations in India and Europe as well.
But now the new executive order makes it evident that the US government, especially the key personality President Trump is adamant that he will not let TikTok operate in the country in any way.
Andrew Feinberg, a reporter covering White House has tweeted that President Trump has signed an executive order addressing the threat posed by TikTok and ordered to ban the app in 45 days. It is, however, uncertain how the executive orders will affect the apps’ operations until then, as pointed out by Techcrunch.
The White House has also announced that they have signed a similar order banning WeChat, the messaging app owned by Tencent.
The orders cite the International Emergency Economic Powers Act and the National Emergencies Act.
Previously, Microsoft announced that it is in negotiations to buy TikTik from ByteDance and said it will set a date for closure of the deal around September 15. Let's see how this matter will proceed from here.