TikTok. Trump’s administration recently announced a twin executive order taking effect in 45 days. This order targets not just TikTok, but another popular messaging app, WeChat.
TikTok. The order recently passed bars any form of transaction with TikTok or even WeChat within the jurisdiction of the United States.
Although the order is taking effect in 45 days, Microsoft is already in talks to possibly acquire TikTok.
Somehow, Trump did not display strong objections should TikTok be acquired by an American company like Microsoft.
The tension between both powerhouses, the United States and China, escalate as the days go by.
The fighting over rifts in trade, geopolitics, and technology is the worst seen in decades.
President Trump accused Tencent, the maker of WeChat, and ByteDance, the maker of Tiktok, of providing a certain channel for the dreaded Chinese Communist Party.
The accusations state that the platform provides the CCP with America’s own proprietary information. The allegation also claims that the app keeps tabs on Chinese citizens located abroad.
Aside from the observation, the app allegedly carries disinformation campaigns that work to China’s benefit.
The scope of the whole ban is still vivid, including which exact transactions will become severed. It looks like there are more severe consequences for WeChat as opposed to TikTok.
The app is popularly known amongst the Chinese people as a means of communication, news, and a way to carry business transactions.
Both TikTok and Tencent declined to give an immediate response. Microsoft also declined to give a comment.
Microsoft’s Potential Acquisition
This order comes along when TikTok and at least three other true American companies just like Microsoft are in talks of a potential acquisition.
Just last week, Microsoft went public stating its plans to pursue the negotiations for buying TikTok’s service in the US, Canada, Australia, and New Zealand. The company announced the acquisition to take place by September 15.
ByteDance Suffers with TikTok
The threat of a total ban on transactions is a devastating blow for ByteDance. The companies CEO, Zhang Yiming, suffers the hit as the goal for years was to connect the entire world with various consumer apps.
ByteDance is already responsible for over 20 apps that include personal financial apps and other productivity programs.
So far, TikTok is still the crown jewel of the company’s portfolio. The app reportedly has over 800 million people around the globe.
The short and catchy videos on this platform spread like wildfire and easily make content viral over social media channels.
This is what makes TikTok so powerful, the fact that the chances of getting viral are bigger.
Mr. Zhang Yiming also took huge steps to make sure to allow TikTok’s presence in the world’s most important consumer markets.
The measures include storing data on protected servers in Virginia and Singapore. The company also hired heads of business from the United States.
The potential reason why Microsoft wants to acquire TikTok could be based on the success the social media platform has achieved.