Microsoft was already in talks with ByteDance Ltd. to acquire rights over TikTok and make it a US-owned company. Had it not been for Trump’s intervention, TikTok, by now, would have been Microsoft’s own social media platform. This could be a huge step in making this app clear of accusations of leaking important data information of countries to the Chinese counterpart. But, as of now, an ‘Indian angle’ in Microsoft’s acquisition of TikTok is coming to the forefront.
Microsoft and TikTok
TikTok recently got banned in many countries on being accused of leaking crucial information to China. However, Microsoft came forward to acquire rights over this app and make TikTok a US-owned company. But President Trump was adamant in banning TikTok and said that he will never allow TikTok to prosper in America. Thus the deal, that was just about to get sealed, was put on hold.
There were very heated debates regarding this in China. A newspaper legit bore the headline “China will not accept US theft of TikTok”. The article also accused President Trump of trying to submerge China’s economy. It will be worth seeing what they have to say about the likely ‘Indian angle’ in Microsoft’s acquisition of TikTok.
‘Indian angle’ in Microsoft’s acquisition of TikTok
A source closer to the discussions has revealed that Microsoft is not going to buy all of TikTok. Yes, you heard it right. Microsoft just wants to acquire the TikTok assets in North America, Australia and New Zealand. The mega-company has not yet officially revealed how much they are willing to pay to acquire these assets. But a source has revealed that ByteDance values TikTok at more than $50 billion dollars.
Coming to the ‘Indian angle in Microsoft’s acquisition of TikTok’, we all know how big a market India is for this short-video platform. Yet, Microsoft has not included the app’s operation from India in the deal. Many insiders and analysts believe that this is due to the ban imposed on TikTok by India. Many also believe that the less number of digital advertising opportunities in India has made Microsoft omit this country in the deal. But as per reports by Financial Times, ByteDance might sell TikTok India either to foreign investors or prospective Indian buyers. If Microsoft does not end up buying TikTok India, many believe that Reliance Jio might want to do so. With Jio’s ever-increasing digital consumer business, acquisition of such a popular app will be a feather on its cap.