Microsoft has been able to breathe new life into their pursuit of the social media app TikTok. This comes only two days after President Trump announced that he planned to ban the video-sharing platform in the U.S. CEO of Microsoft Staya Nadella reportedly changed his mind during a meeting this weekend.
By midday on Friday, it had been leaked that tech giant Microsoft was trying to buy TikTok. The news flew in the face of the Trump Administration, which had been trying for weeks to ban the app over security concerns. The U.S. government has concerns about the Chinese company’s alleged misuse of user data. However, the administration had said that selling the app to a U.S. company could be an adequate compromise. Still, by Friday evening, Trump had told reporters that he was eyeing a ban that could be in effect as early as Saturday.
Luckily for TikTok stars across the nation, Microsoft CEO Satya Nadella quickly took action. Over the weekend, Nadella opened a channel for negotiations with the president. Later, on Sunday evening, Microsoft announced in a blog post that their pursuit of TikTok was back on track.
The bolgpost reads:
“Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.”
The post also states that September 15th, 2020 is the latest possible deadline for the completion of the acquisition deal. Microsoft revealed that ByteDance, TikTok’s parent company, has already shown interest in their current plan.
The idea right now is that Microsoft will own and operate TikTok in America, Canada, Australia, and New Zealand. The company said that if there is enough interest, they might allow other American companies to purchase minority stake in TikTok.
Following this announcement, Microsoft stock is up almost 6%.
TikTok responded even before the Sunday announcement, posting a resolute video-message on their platform and on Twitter. In the video TikTok’s U.S. general manager, Vanessa Pappas, says the company isn’t going anywhere. She also pointed out that the company is planning to hire 10,000 workers in the U.S.
Microsoft’s New Direction
This acquisition would be a big change in direction for Microsoft. For years, the company has chosen to stay out of the social media market, instead focusing on financial and business software. Grabbing hold of a multi-billion dollar social media app, that holds more interest among younger crowds than Facebook, would be a huge change in the industry. This is a great opportunity for Microsoft to broaden its market.