Microsoft wants to buy TikTok entire global operation, a new report claims.
It would mean Microsoft snapping up the app in the UK, Europe, and India as well as its U.S. business.
Until now, Microsoft was only expected to buy the U.S. operation.
But a new report from the FT cites five insiders as saying Microsoft wants to buy TikTok’s global business.
It follows news earlier today that Microsoft could strike a $30 billion deal to buy TikTok in a matter of days.
The tech giant is currently racing against a September deadline to finalize a buy-out of the popular Chinese app TikTok.
The deal is expected to be valued at anywhere from $10 billion to $30 billion, according to the report.
At the higher end, it would dwarf many major tech acquisitions including Facebook’s 2014 purchase of WhatsApp for $16 billion.
But it’s still small change for Microsoft, which is currently valued at $1.61 trillion on the U.S stock market.
And at the end of 2019, Microsoft had roughly $135 billion in a liquid cash pile.
Part of the deal would also involve Microsoft bringing all of TikTok’s code from China to the U.S. within a year.
Microsoft’s chief managed to help convince President Trump about how beneficial a TikTok buy-out could be for the U.S.
Whether it’s Microsoft or somebody else a big company, a secure company, a very American company buys it.
But his praise of a potential deal came with a major warning: the US Treasury would need to benefit from any deal struck.
It’s not clear how this would work, or through what mechanism money would be paid, as usually the Treasury wouldn’t gain a portion of a private corporate acquisition.
I said that a very substantial portion of that price is going to have to come into the Treasury of the United States, said Trump.
Because we’re making it possible for this deal to happen.
He added that an appropriate deal would mean the Treasury – gets a lot of money.
It’s still possible that Trump will decide to ban TikTok over national security concerns.
But buying the app could be a huge coup for Microsoft and the U.S., as TikTok serves more than 100 million American users.
It would give Microsoft a better chance of competing with major social media rivals, in particular Facebook.
The September 15 deadline is being imposed by the Committee on Foreign Investment in the United States, which regulates international deals based on security risks.
President Trump is expected to make a decision on banning TikTok soon as White House advisor Peter Navarro called the social app a national security threat.
According to the Director of the Office of Trade and Manufacturing Policy, TikTok has been sending American information including user-location back to its servers in China.
Navarro claims that all personal information is potentially going right back to the Chinese communist party, the Chinese military, and the Chinese government.
Navarro also stated that the app is a national security threat and that President Trump and Secretary of State Mike Pompeo have been monitoring the app’s movement of information.
TikTok is a Chinese-owned video app that’s become popular among Americans in the last two years or so.
It was the world’s second most downloaded app in the third quarter of 2019, with an estimated 176 million downloads.
The decision to ban TikTok could have a serious impact on young voters in the upcoming 2020 U.S. Presidential election.
In other news, TikTok has said it has tens of millions of U.S. users and hundreds of millions of users worldwide.
But while it’s considered fun by users, U.S. lawmakers have raised intelligence, national security, and privacy concerns about the company’s ownership.
TikTok has denied allegations that it shares user data with the Chinese government.
Trump’s announcement on Friday came after reports claimed his administration was planning to order China’s ByteDance to sell TikTok.