Microsoft is in Talks to Buy TikTok
Microsoft is in talks to acquire video-sharing app TikTok from Chinese parent company ByteDance, according to CNBC.
A person familiar with the matter stated that the talks have been underway for some time. Microsoft acquiring TikTok would help the tech giant become more exposed to the consumer technology industry. TikTok was launched in 2017 and had more than 2 billion downloads in April.
ByteDance investors are seeking a $50 billion valuation for TikTok, according to Reuters. Lawmakers have scrutinized the app for its potential national security threat. Treasury Secretary Steven Mnuchin stated earlier this week that the Treasury Department's Committee on Foreign Investment was reviewing the app.
“We’re looking at TikTok, we may be banning TikTok, we may be doing some other things, there’s a couple of options but a lot of things are happening, we’ll see what happens,” President Donald Trump said on Friday. “We are looking at a lot of alternatives with respect to TikTok.”
Microsoft declined to comment on the acquisition and shares closed up 1 percent on Friday.
“While we do not comment on rumors or speculation, we are confident in the long-term success of TikTok,” TikTok said in a statement Friday.