TikTok, one of the most popular social networks out there, is in some hot water in the United States, and it could come down to a ban if things don’t go a certain way.
According to several different reports, President Trump has said that there will be a ban on several different apps and services based out of China due to security concerns. The primary focus right now is on TikTok though, especially with Microsoft wading into the pool and saying it is currently pursuing an acquisition of the U.S. arm of TikTok’s business. Trump has gone further and said that he expects the United States Treasury to get “a lot of money” for any sale that does happen.
TikTok and Microsoft
Last week, there were rumors swirling around that Trump planned on banning TikTok in the United States. It didn’t take long before Microsoft’s name was included in the mix, reportedly looking to buy TikTok in the United States and bring the service into its own fold. Over the weekend Microsoft made those rumors official, saying it is indeed taking part in active conversations with TikTok’s parent company, ByteDance, in an effort to make a purchase.
Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.
Microsoft will move quickly to pursue discussions with TikTok’s parent company, ByteDance, in a matter of weeks, and in any event completing these discussions no later than September 15, 2020. During this process, Microsoft looks forward to continuing dialogue with the United States Government, including with the President.
However, as that news broke it became clear that Trump wasn’t initially a fan of that plan, either. It certainly looked like Trump simply wanted TikTok shut down and that would be the end of it. However, after Microsoft reached out and spoke to Trump, POTUS changed his tune. At least a little bit. Now, Microsoft can move forward with trying to purchase TikTok, but the deal has to be completed by September 15.
The September 15 deadline
Microsoft has confirmed it’s trying to buy TikTok and keep the service alive, but it’s on a limited time frame to get this done. Now, as reported by Bloomberg and The Hill and other outlets, Trump has agreed that Microsoft can try to buy TikTok, and, if a sale does happen, then he expects the U.S. Treasury to get “a lot of money” out of the deal.
Trump has said that he “doesn’t mind” if Microsoft buys TikTok, or if it’s anyone else for that matter. Basically it comes down to money, if TikTok is allowed to continue to do business in the United States. Per the report from Bloomberg:
I don’t mind whether it’s Microsoft or someone else, a big company, a secure company, a very American company buys it,” Trump told reporters at the White House on Monday. “It’ll close down on Sept. 15 unless Microsoft or somebody else is able to buy it and work out a deal, an appropriate deal, so the Treasury of the United States gets a lot of money.
If Microsoft (or any other company for that matter) does acquire TikTok in the United States, then it would control the service not only in the U.S., but also in Australia, Canada, and in New Zealand. As far as what Trump is basically demanding from this particular, and still potential, deal, the details remain unclear. There’s no clear line how the United States would be getting “a lot of money” for the acquisition.
#BREAKING: President Trump says TikTok must be bought by US company and pay cut of selling price into US Treasury: "Right now they don't have any rights unless we give it to them." pic.twitter.com/VJ7gC1u6nc
— The Hill (@thehill) August 3, 2020
But it also comes down to this: if TikTok isn’t sold by September 15, the app will more than likely be banned in the United States.
What do you think of all this? Let us know in the comments.