Microsoft Explores Acquisition of TikTok: A Game-Changing Move?
Xbox owner Microsoft is currently in talks to purchase the social media giant TikTok.
This information comes from the recently reinstated US President Trump, who has informed reporters of Microsoft’s participation (via Reuters). Microsoft has chosen not to comment on the matter.
TikTok’s current standing in the US appears unstable, following a ban imposed by the previous US administration and the Supreme Court due to concerns over national security associated with the app’s Chinese parent company ByteDance. In Europe, the UK government, the BBC, and the European Commission have prohibited the app on official devices.
Before returning to office, Trump indicated that he would lift the ban – even though TikTok briefly went offline in the US, only to return with a message thanking Trump during that time.
TikTok’s US suspension is now officially on hold for 75 days, during which the social media powerhouse and its highly engaging algorithm must either be acquired or permanently prohibited.
Microsoft stands as one of the few companies with sufficient resources to make a significant offer, with TikTok’s valuations estimated around $100 billion, and some estimates even higher.
Nonetheless, as we are aware, Microsoft seemed quite willing to invest $67.8 billion just a couple of years ago to acquire Call of Duty and World of Warcraft creator Activision Blizzard. What’s an additional $30 billion for control of the extremely influential TikTok?
Microsoft has previously expressed interest in TikTok, making significant progress towards a deal in 2020 during Trump’s initial term. Other contenders for the acquisition of the social media platform include cloud computing firm Oracle, as well as X owner Elon Musk.
If completed, TikTok would be, by far, Microsoft’s largest acquisition to date. Besides