TikTok is one of the most widely used social networks today. The service saw its user base explode after it went global in 2018, becoming the platform of choice for an entire generation. The only problem with it was – and still is – its ownership: it is run by the Chinese multinational internet company ByteDance. And this makes it disliked by the authorities of some countries, especially the US.
About a month ago, US President Donald Trump has started a crusade against the Chinese service, suspicious that it may have ties to the Chinese government – a concern he and members of his administration have expressed several times in relation to several Chinese companies, including telecom giant Huawei. A month ago, he declared that he’ll ban the service in the US unless it is acquired by an American company.
Major tech companies often extend their services by engulfing smaller businesses. Just take a look at the recent acquisition of the GIF-sharing service Giphy by Facebook. Usually, there is no regulatory pressure behind a company’s decision to buy another one – unlike the case of TikTok.
The contenders
Soon after the announcement, the first contender with the financial power to buy the Chinese service valued at around $50 billion: Microsoft. The Redmond giant initially only wanted the US, Australian, and Canadian branches of the service. Soon after the announcement was made, in turn, news about a possible complete takeover started circulating online, covering the service’s operations in India and Europe as well. China is not among the markets TikTok is present in – it has a sister service called Douyin operating there, and it was not included in the deal.
Late in August, another contender emerged with the intention to take over TikTok: cloud applications and database solutions provider Oracle. The company reportedly works with other American businesses with stakes in ByteDance, like General Atlantic and Sequoia Capital. Many have questioned the intentions of the business, focused on corporate solutions and customers – its intentions seem to be expanding its user base by millions and gain access to all the data generated by them.
In a week?
The coming week is expected to bring a potential binding deal to purchase at least parts of TikTok, Fox Business writes based on information revealed by sources with inside knowledge. Apparently, the deal will cover the US assets of TikTok, leaving Australia, New Zealand, and Canada out of the deal. With its recent partnership with Walmart, Microsoft appears to be the one likely to seal the deal. After all, the retail giant is one of the best-known and most popular brands in the US, and having it on its side, Microsoft has put itself in a winning position in the race for one of the most popular social networks today
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