Microsoft's TikTok Deal Reportedly Ballooned After Trump Intervened
An anonymous reader quotes a report from CNBC: Microsoft's acquisition talks with TikTok and its Chinese parent company ByteDance "ballooned" this summer after President Donald Trump intervened, according to a report from The New York Times, citing people familiar with the situation. ByteDance is being forced to sell TikTok's U.S. business by the Trump administration, which says the app's current ties to China make it a national security threat. An executive order signed by Trump on Aug. 6 means a sale must go through before Sept. 15. However, TikTok sued the U.S. government on Monday, alleging it was deprived of due process. The lawsuit could delay the ban, giving TikTok more time to get a better deal for the sale. When the deal talks began, Microsoft is said to have been reluctant to do any kind of large TikTok acquisition, due in part to the rising tensions between the U.S. and China, according to the Times report. However, a minority stake in the wildly popular video sharing app was viewed positively as it may lead to TikTok ditching Google Cloud, which it currently uses, and signing up to Microsoft Azure, instantly making it one of Microsoft's largest cloud customers. TikTok could also be integrated with Microsoft's $7 billion advertising business. Microsoft issued a statement on Aug. 2 about its pursuit to buy TikTok's U.S. business. However, on Aug, 3, Trump said he'd rather Microsoft, valued at $1.6 trillion, purchase the app that is used by 100 million Americans in its entirety. "I think buying 30% is complicated," Trump told reporters in the Cabinet Room at the White House. There are now several other bidders competing with Microsoft, with the main one being enterprise software firm Oracle. Netflix and Twitter have also been contacted by bankers and investors, but it's not clear if they're interested, according to the Times. In any case, deal talks between the parties have "morphed into a big, messy, political soap opera," according to the report.
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