According to the report, senior US administration officials examining whether the video app does harm national security have held talks with at least one large company and with investors in Tiktok’s parent company, BateDance, who are interested in acquiring a stake in Tiktok.
Meanwhile, BateDance is considering a structural change in Tiktok, in case Trump does decide to boycott; Bloomberg also reported that investors in BateDance offered the company’s CEO Zang Yiming several ways to address the issue.
It was reported yesterday that Microsoft is interested in acquiring Tiktok’s operations in the US. Every possible solution will have to be examined by the US Foreign Investment Committee and regulators in the country. The deal is a rare opportunity to profit from the momentum of the fastest growing social media app in the US
However, not every company may be tempted to make such a deal. Tiktok’s valuation is $ 20 billion to $ 40 billion, so few companies will be able to afford it, and even those who do – may find it a politically problematic move.
The CEOs of Facebook, Google, Amazon and Apple testified before the U.S. House of Representatives this week and answered questions from lawmakers about their vast market power. While each of these four companies could theoretically acquire Tiktok, every move they make is already under scrutiny by regulators.
Google, whose YouTube is a competing video service, is facing a European investigation into its acquisition of Fitbit – a much smaller company. Apple is not inclined to make acquisitions of companies the size of Tiktok, and Facebook, which previously acquired WhatsApp and Instagram, is now facing new conflicts of interest investigations.
The world’s largest social media network has already tried to draw legislators’ attention to ticketing, and is not expected to further jeopardize its fragile position when it comes to information security. Facebook has also examined the acquisition of Musical.ly – Tiktok’s predecessor, in 2016.
Microsoft, with a market capitalization of $ 1.55 trillion, is larger than Google and Facebook, andreputation Its better than theirs in Washington, and she, by contrast, was not invited to the July 29 conflict of interest hearing. It is unclear whether Microsoft is interested in acquiring Tiktok for itself, or collaborating with other investors to make Tiktok an independent US-based business.
Media companies like Walt Disney and Verizon have previously been interested in acquiring social media companies. Disney considered acquiring Twitter in 2016 but abandoned the idea. Tiktok U.S. CEO Kevin Meyer has previously served as head of the streaming unit at Disney, and may be in a good position to mediate a possible deal. Other social media companies such as Twitter and Snap (which operates Snapshot) have a lower market value than Tiktok, and are therefore unlikely to purchase it, and if so – they will have to use shares or external financial aid for this purpose.
It is still unclear how an American purchase of Tiktok will be made, and to what extent the app will have to disconnect from its current Chinese owners. The company did not say how such a move would affect its employees, its technology or its products. In any case, there is one group to which no potential buyer would want to alienate: 165 million ticktock users in the US.