Microsoft eyes larger TikTok acquisition?

BENGALURU: Microsoft is reportedly planning to acquire popular social video app TikTok in markets like India and Europe too, besides in the earlier announced United States market.

In countries such as India and the US, where governments have actively flagged data privacy concerns over the app’s use and Chinese ownership, the takeover will separate the businesses from parent company Bytedance, which faces allegations of being heavily influenced by the Chinese state. 

In the US however, the tech giant may have to move fast after President Donald Trump signed an executive order on August 6 banning the app after 45 days.

Trump also mentioned India’s recent ban on various Chinese apps in the order, stating that India’s Ministry of Electronics and Information Technology asserted that they were “stealing and surreptitiously transmitting users’ data in an unauthorized manner to servers which have locations outside India.” Following the latest EO, analysts believe that the valuation of the TikTok, Microsoft deal could be significantly lower than the earlier estimates of $50 billion.

Bytedance. Microsoft said on Sunday that following its CEO Satya Nadella’s discussions with Trump, it may acquire TikTok in US and other markets like Canada, Australia and New Zealand.

According to a Financial Times report, the firm is now eying other Tiktok units too, such as India where it had generated the highest number of downloads, nearly 611 million, before it was banned in June this year. The US is also a key market In terms of revenue, accounting for nearly 19 per cent at $86.5 million.