Global Economics

What’s the Deal with Microsoft and TikTok?

TikTok has been making news headlines throughout the past week due to the announcement of Microsoft’s intention to purchase the video-sharing app potentially and as a result of Donald Trump’s notice of intent to ban the use of the app in the U.S.

There has been a lot of speculation and confusion surrounding the potential purchase of TikTok by Microsoft (MSFT). It was initially announced that Microsoft has intentions of potentially purchasing TikTok services in the United States, New Zealand, Canada, and Australia. Currently, TikTok is owned by a Chinese company called ByteDance. However, on Friday, President Trump announced his intentions while onboard Air Force One to ban the video-sharing app from use in the United States.

According to the White House and other regulators, the TikTok app’s use was raising concerns about national security due to the potential collection of data by U.S. TikTok users. The possible ban of the popular app was met with widespread concern by users and also by the American Civil Liberties Union (ACLU), who claimed that the move to ban could possibly pose a threat to free expression here in the U.S.

On Sunday, however, Microsoft confirmed that sales talks with TikTok had resumed. According to the tech giant, CEO Satya Nadella spoke with President Trump to address his concerns about TikTok. Microsoft will be required to provide proof of benefits to the U.S. economy, as well as perform a full review of the app’s security to ensure user safety.

If all goes well, Microsoft and TikTok discussions could be over by September 15th.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.


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