InvestorQ : What is the latest on Microsoft’s attempts to acquire Tik Tok American operations?
Arusha Ray made post

What is the latest on Microsoft’s attempts to acquire Tik Tok American operations?

Answer
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diksha shah answered.
1 month ago


With Microsoft showing keenness to acquire the US operations of Tik Tok, the big question in the global technology market is whether Bytedance, the owner of the TIk Tok brand will allow Microsoft to take over its US business. Satya Nadella, the CEO of Microsoft, has already hinted at a deal value in excess of $40 billion for the US business of Tik Tok.

That would be really top dollar payment since Bytedance has an overall market cap of $140 billion and Tik Tok is only one of the products of Bytedance. The US is still a very small market for Tik Tok with just about 100 million customers in the US. In addition, the US contributes less than 2% of the total revenues of Bytedance.

Whether China will allow the sale is another question. As of now, China has already protested that it cannot be forced to sell out its business to a US company under duress. Tik Tok is one of the many ecommerce and digital engagements that China has successfully modelled in China and replicated across the world.