If you haven’t downloaded TikTok or WeChat yet, you might want to do so quickly. This is because according to an announcement by the US Department of Commerce, both TikTok and WeChat will be banned and removed from app stores in the US starting this Sunday, and will also see the ban of US companies hosting these services.
Given the popularity of TikTok, it didn’t come as a surprise to learn that many other tech firms were racing to create something similar. Instagram launched Reels and now it looks like YouTube has also decided to wade into the market with their own answer called YouTube Shorts.
When it was announced that TikTok had to seek a US buyer or face potentially being banned in the US, Microsoft also announced that they were in talks to acquire the company. What was interesting is that Oracle, typically seen as a tech company aimed more at enterprise users, threw their hat into the ring as well.
When it was first announced that TikTok would have to sell itself off to US companies, it was revealed that Microsoft was the frontrunner to acquire the company. However, in a short statement put out by the company today, Microsoft has announced that they would no longer be acquiring the company.
One of the reasons why companies acquire other companies is for their technology. However, it seems that whoever acquires TikTok might actually end up getting the short end of the stick because according to a report from the South China Morning Post, ByteDance is willing to sell TikTok, but not its source code.
Earlier reports had indicated that if TikTok wanted to keep operating in the US, they would need to sell themselves off to a US company. The app is currently owned by China company ByteDance, although they do have a US base of operations. However, it seems that China is not too pleased with the idea.
As many of you have heard by now, TikTok could be in trouble if they do not find a buyer for the company. This is due to the US government essentially threatening to ban the app if they are not acquired by a US company over national security concerns as TikTok is owned by ByteDance, a company based in China.
The US government has given TikTok until the middle of the month to find itself a buyer if they hope to continue operating in the country. Of course, given how successful TikTok is, it doesn’t come as a surprise to learn that China has introduced a new rule regarding the export of technology to other countries, which in turn could throw a wrench in the US government’s plans.
TikTok’s parent company ByteDance is currently racing against the clock where they need to find a buyer for TikTok’s US operations by the 15th of September or risk getting banned. Microsoft is currently the favorite to acquire the company, but with all deals, there is always a chance that it might fail and fall through.
Unless TikTok can find a US buyer for the company, it faces the possibility of being banned outright. To date, Microsoft is the frontrunner in a bid to acquire the company, but it seems that Walmart is now interested as well, although in this case, they might actually want to work with Microsoft to acquire the company.
In order to remain operational in the US and to avoid a potential lengthy and drawn out lawsuit, TikTok’s owner ByteDance will most likely have to sell off the company. To date, Microsoft is the only company that has publicly expressed their interest in the platform, although last we heard, Twitter had also expressed some interest.
The argument that the US government is using in their bid to ban TikTok is that they claim that the app collects data on US citizens, which they believe poses a risk to national security. It seems that whatever excuses TikTok is making to defend itself might be moot, especially with a recent discovery.
As TikTok’s owners are racing towards finding a buyer for the company to help it skirt around a potential ban, it would seem that according to a report from The Wall Street Journal that the company has apparently a few other buyers who are interested in the company, one of them being Twitter.
With TikTok facing a potential ban in the US, it was recently confirmed that Microsoft is interested in acquiring the company. This would effectively make TikTok an American company without any ties to China as its US operations would no longer be controlled by ByteDance, TikTok’s parent company in China.