tirsdag 4. august 2020

Why Microsoft wants to buy TikTok

TikTok is scrambling to keep its American presence alive, and Microsoft has emerged as a potential, albeit unlikely, savior.  Microsoft (MSFT) on Sunday said it is pushing forward with talks to acquire TikTok, following a conversation between CEO Satya Nadella and President Donald Trump, who previously threatened to ban the app in the United States. 

The transaction could be complicated and difficult to accomplish. And Microsoft has in recent years shifted its strategy away from consumers toward businesses.  Still, analysts say the deal is almost certain to be worthwhile for both companies.  It's clear why TikTok would be interested in the deal: Trump has said he will ban the app if it doesn't find an American buyer by September 15. Microsoft may be TikTok's only hope. While other Big Tech firms might seem like a more natural fit to acquire TikTok — Facebook (FB), Google (GOOGL), Amazon (AMZN) and Apple (AAPL) are facing antitrust scrutiny that would likely get in the way of an acquisition. 

Multiple analysts have described the acquisition as a potential "coup" for Microsoft — an opportunity to scoop up one of the world's fastest growing social media platforms at a time when TikTok may be desperate to make a deal.