Windows of opportunity

4 August 2020 By Gina Chon Follow @GinaChon

The least cool tech giant has outperformed most of its rivals to reach a $1.6 trln value. Owning the popular video app could finally bring buzz and ad dollars. There are political risks, and buying only part of TikTok may be messy. But potential financial gains make up for it.

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President Donald Trump said on Aug. 3 that the U.S. government deserves a “big percentage” of the proceeds from a potential sale of TikTok’s U.S. business to Microsoft. He also said he wouldn’t mind if Microsoft or another American company acquired the video app and said it would be shut down if a deal couldn’t be reached by Sept. 15.

Microsoft said on Aug. 2 it would continue talks to purchase TikTok in the United States after Satya Nadella, the software maker’s chief executive, spoke to Trump. The president had previously threatened to ban TikTok's service. The app is owned by ByteDance, based in Beijing.

Microsoft is in talks to acquire the app’s business in the United States, Canada, Australia and New Zealand. Microsoft may invite other U.S. investors to take a minority stake.

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