Microsoft is in talks to purchase social app TikTok

Satya Nadella talking on the 2016 World Financial Discussion board in Davos, Switzerland.

David A. Grogan | CNBC

Microsoft has held talks to purchase the TikTok video-sharing cell app from Chinese language proprietor ByteDance, one particular person near the state of affairs mentioned. This particular person characterised the talks as having been underway for a while, not model new. 

A TikTok acquisition may make Microsoft, a significant supplier of enterprise software program, extra focused on client know-how, which Microsoft has moved away from considerably in recent times, by exiting the smartphone {hardware}, health {hardware} and e-book markets. Microsoft purchased LinkedIn for $27 billion in 2016. In 2014, the corporate paid $2.5 billion to buy sport developer Mojang, whose Minecraft title is widespread amongst youthful customers who additionally make up TikTok’s core viewers within the U.S.

Chinese language firm ByteDance launched TikTok in 2017. The app has grown extra widespread throughout the coronavirus pandemic, with 2 billion downloads in April, in response to Sensor Tower. Opponents embody Fb and Snap.

ByteDance traders in search of to take over TikTok have valued it at $50 billion, Reuters reported earlier this week.

The rise of TikTok within the U.S. has prompted the Trump Administration to scrutinize the app. Earlier this week Treasury Secretary Steven Mnuchin mentioned it was being reviewed by his division’s Committee on Overseas Funding within the U.S. 

“We’re taking a look at TikTok, we could also be banning TikTok, we could also be doing another issues, there’s a few choices however plenty of issues are taking place, we’ll see what occurs,” President Donald Trump mentioned on the White Home’s South Garden on Friday. “We’re taking a look at plenty of options with respect to TikTok.”

Microsoft declined to touch upon the talks, which had been first reported by Fox Enterprise Community.

“Whereas we don’t touch upon rumors or hypothesis, we’re assured within the long-term success of TikTok,” TikTok mentioned in a press release Friday.

Microsoft shares closed up lower than 1% on Friday.

— CNBC’s Jessica Bursztynsky, Steve Kopack and Alex Sherman contributed to this report.

WATCH: Microsoft in talks to purchase TikTok: The New York Instances 

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