Global friction against China is on the rise, and TikTok is one of the companies taking its brunt. The video-sharing app recently echoed that it has an American CEO attempting to prove itself a trustworthy name.
Anyway, as per the latest developments, the tech giant Microsoft may end up buying the US portion of TikTok.
According to a tweet by Fox Business Network’s Charles Gasparino (via Windows Central), the Trump administration plans to order TikTok’s owner ByteDance to divest its stake in the US portion of the video-sharing app.
A U.S. chunk of TikTok will then be up for grabs for companies, and Microsoft’s name has come up as first in line.
Gasparino confirmed in another tweet that Microsoft is in talks to buy TikTok’s US business.
Meanwhile, Trump told reporters that the government is considering banning TikTok, which could happen as soon as Saturday.
Find your dream job
Recently, TikTok was banned in one of its biggest markets, India, as part of a massive Chinese apps clean up, and it was speculated that the U.S. might end up doing the same. Similarly, Japanese lawmakers are also considering a TikTok ban.
It is feared that the data of American citizens may end up on Chinese soil and be misused. According to Bloomberg, the U.S. TikTok ban is part of Trump’s retaliation against China’s handling of the COVID-19 pandemic.
However, just like India, TikTok in the U.S. is home to many content creators and employs 1,000+ people on American soil.
As part of its transparency efforts, TikTok has also offered to reveal its algorithm for expert review and examine its moderation policies in real-time. Its CEO Kevin Mayer urged competitors to do the same.
Speaking of competitors, Facebook has taken full advantage of TikTok’s downfall by launching Reels as a TikTok alternative where creators are finding a new home. Not to mention the uncanny resemblance that exists between Reels and TikTok. Meanwhile, YouTube has also started testing short videos on its app.
Nonetheless, the question of whether TikTok will get banned or become a U.S. company is yet to receive an answer. We’ll update you with more information as it arrives.