President Trump is the reason why Microsoft is “interested” with the TikTok deal

Tram Ho

The talks between Microsoft and ByteDance, the parent company of TikTok, only really exploded this summer after the intervention of US President Donald Trump, the New York Times said.

ByteDance was forced by the Trump administration to sell TikTok operations in the US on the grounds that its current relations with China were a threat to US national security. An executive order signed by Mr. Trump on August 6 states that the deal must be made by September 15 or TikTok will be closed.

However, TikTok sued the US government on August 24, a move that could delay President Trump’s ban, leaving ByteDance more time to negotiate a better deal from the deal. .

Tổng thống Trump là lý do khiến Microsoft mặn mà với thương vụ TikTok - Ảnh 1.

Back at the time when negotiations began, Microsoft reportedly was reluctant to make any large-scale acquisitions with TikTok. Part of this lack of salience comes from the growing tensions between the US and China. Conversely, owning a decent amount of stakes in the popular video-sharing app is said to be extremely positive for Microsoft.

Specifically, holding shares could be the first step for TikTok to give up using the Google Cloud platform and switch to Microsoft’s Azure cloud storage service. If this happens, TikTok will instantly become one of Azure’s most popular customers. Additionally, TikTok could also be integrated into Microsoft’s $ 7 billion advertising business.

On August 2, Microsoft announced that it would pursue the acquisition of TikTok in the US. However, on August 3, Mr. Trump wanted Microsoft, a company with a market capitalization of $ 1.6 trillion, to acquire the entire building that has 100 Americans in use. “I think buying a 30% stake is complicated,” Trump told reporters during a White House press conference.

Currently, there are a number of other businesses next to the site with Microsoft, including enterprise software company Oracle. Netflix and Twitter have also reached out to banks and investors for interest in the deal. However, it is not currently determined whether they will be interested in purchasing the entire TikTok in the US.

According to the New York Times, in any scenario, negotiated negotiations between the parties could turn into “a big and chaotic political drama”.

Whoever wants to buy, the price of the deal is forecast to fluctuate between $ 20 and $ 50 billion depending on the amount of data the Chinese company sells. CNBC’s David Faber earlier this month said that Microsoft was discussing the purchase of TikTok for between $ 10 and $ 30 billion.

According to Times sources, the deal with Microsoft could boost TikTok’s value outside of China up to $ 80 billion. However, they also stressed that any agreement, even if agreed by both sides, could be broken by intervention by Washington or Beijing.

The fact that the US forces ByteDance to sell TikTok in the US is making the Chinese government unhappy. Meanwhile, the Trump administration also makes very high demands for this deal.

Microsoft and TikTok declined to comment.

 

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Source : Genk