Microsoft Corporation, the tech giant that was formed by Bill Gates and Paul Allen in 1975, is now planning to purchase a social media phenomenon – the TikTok app.
It all started when Donald Trump, the president of The United States said that he is looking to ban the Chinese app inside the USA.
Yet behind the scenes, Microsoft was considering a purchase of the operations of TikTok in the USA.
This gained momentum thanks to pressure from some of the Republican law makers in the White House.
TikTok currently has over 100 million users in the USA, and could add a huge chunk of the younger audience data base.
Microsoft purchased LinkedIn for 26.2$ billion in 2016, and Skype for 8.5$ billion in 2011.
It had many more acquisitions since then, however TikTok might be it’s biggest acquisition yet.
TikTok would give Microsoft the control of one of the largest and most influential social media networks in the country.
The deal should be sealed by September 15th, 2020. If Microsoft doesn’t purchase the app, it would probably be banned in the United States, at least as long as Donald Trump is president.
This surely will effect Microsofts share price and market value, so if you currently are a Microsoft stock holder, this might be a story you want to follow up with 🙂