Why Microsoft Wants To Buy TikTok

Why Microsoft wants to buy TikTok. Microsoft will aim for the talks on September 15.

And it is good for Microsoft to own the most developed social media platform in the world right now. Microsoft stock rose about 4.5% when it was rumored that the company might buy back TikTok’s U.S. operations. operations.

Microsoft is stepping up negotiations to acquire TikTok with the participation of CEO Satya Nadella and President Donald Trump. He threatened to ban the application in the United States.

Why Microsoft Wants To Buy TikTok

In recent years Microsoft has changed its business strategy from consumer-driven to businesses. However, this negotiation seems difficult. Analysts say the deal could be profitable for both companies.

President Donald Trump said that he would ban the app in the United States if he couldn’t find a buyer after 45 days. Microsoft may be the only hope for TikTok. Other Big Tech companies seem more suitable but they are facing scrutiny and hindering acquisitions.

TikTok currently values at $ 50 billion. Shortly thereafter, Microsoft’s market capitalization gained $ 80 billion, a sign that investors liked the idea.

Experts said that TikTok can achieve 200 billion USD in just a few years. The potential of TikTok can be calculated exponentially. Especially, this app is used for outbreaks in the coronavirus pandemic. 

In addition, shares of parent company Snap Inc have fallen by more than 5%.
Trump said Monday he supports Microsoft acquiring TikTok, given it is a “big company, a secure company, a very American company,” though he didn’t rule out another buyer entering the fray. Trump and his administration have objected to TikTok’s wildly popular social media platform. Because of security concerns about it and Chinese parent company ByteDance.

These are the reasons Microsoft wants to buy TikTok.

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