Microsoft intends to buy the highly popular video app TikTok. Trump expects Microsoft to pay the U.S. Treasury Department as well if the company wants to complete the deal. These are tense times as the United States government accuses the Chinese company of spying on behalf of the Chinese government.
There’s a lot of tension between China and the United States right now, and TikTok is one of the companies in the middle of it. Trump’s government actually intends to ban the app in the U.S. because it is afraid that TikTok is used by the Chinese government to spy on its citizens. TikTok, however, indicated that the data of American users is hosted on servers in America and not on servers in China. Trump sees the potential acquisition by a U.S. company as a positive thing: if Microsoft acquires TikTok before the 15th of September, there is no need for a ban.
Microsoft wants to acquire a part of TikTok
Microsoft’s plan was never to buy the entire company. On the contrary, the company only intended to buy a small part of the social media app: only TikTok in Australia, New Zealand, Canada and the United States. Although Trump doesn’t think this will be an easy task, but the president wishes Microsoft-CEO Satya Nadella all the luck in the world.
That said, Trump also expects some financial compensation. Because, according to Trump: “It’s a little bit like the landlord/tenant; without a lease the tenant has nothing, so they pay what’s called ‘key money,’ or they pay something. But the United States should be reimbursed or should be paid a substantial amount of money, because without the United States they don’t have anything, at least having to do with the 30%.”
The question is whether Microsoft would ever opt to go for the entire company: TikTok is estimated to be worth 50 billion dollars: the most expensive company Microsoft ever acquired was LinkedIn for 27 billion dollars.
China’s reaction
There are many different factors at play here. Not only TikTok, Microsoft and the United States: the Chinese government itself has something to say. The government stated that they won’t accept the ‘theft’ of Chinese technology.
China believes that the United States is ‘bullying’ Chinese tech companies which leaves China no choice but “submission or mortal combat in the tech realm”. China added that it had “plenty of ways to respond if the administration carries out its planned smash and grab”. This story will be continued.
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