Microsoft TikTok deal: Microsoft’s blog released some highlights of the call between CEO Satya Nadella and President Donald J Trump. Talks to buy TikTok started after the president announced a ban on Chinese application. The leakage of user data to the Chinese government caused the ban. Microsoft is offering $50 billion to buy TikTok from Bytedance, the parent company of TikTok.
Tiktok made $300 million last year globally, being the 4th most downloaded application in the world. The application has around 100 million users in America. Microsoft made the offer to get the application’s ownership in new Zealand, America, Canada, and Australia.
They aim to make $50 million in sales in the US alone. But huge markets like India and the UK were not even mentioned which makes the deal price unrealistic. India issued a ban on TikTok with 47 other Chinese applications due to the border clash. This border skirmish left 20 Indian soldiers dead.
US secretary mike Pompeo supports this moment by India. TikTok was among those “feeding data to the Chinese Communist Party” said Pompeo. He had no evidence to back that up. When he was questioned about his suggestion on downloading the application by FOX news channel “Only if you want your private information in the hands of the Chinese Communist Party,” he replied. US government plans to ban the application by 15th September, there is no confirmation on the deal.
Read More: JAPAN TO SOON BAN TIKTOK LIKE INDIA AND US
Microsoft TikTok deal, TikTok has huge offices in major cities like Los angles and London, also hired an American chief executive Kevin Mayer. The company executive tried to reassure the Indian government by writing a letter clarifying that the Chinese government has never asked to release Indian user data, and even so the company would never comply.
“The United States should get a very large percentage of that price because we’re making it possible,” Mr. Trump said. This demand faced harsh criticism by Americans, who believe that the clause might bring more complications to the deal. Nicholas Klein, a lawyer at DLA Piper, said generally “the government doesn’t have the authority to take a cut of a private deal through.”