Microsoft confirms plan to buy TikTok and the deal is expected to close by September 15

 Microsoft (MSFT) is serious about acquiring video social media company TikTok and the company confirmed the deal on Sunday, August 2, 2020.  Microsoft issued a statement on its website stating how it would buy TikTok. Also, the company added that other companies may be part of the deal in acquiring TikTok. 

On Sunday, Microsoft said it held talks with Chinese Technology Company ByteDance. According to our records, ByteDance owns the trendy social media app TikTok. 

Last week, Investingport reported TikTok was facing a possible ban by the  American government, however, Microsoft said it will continue talks with the U.S government about acquiring TikTok and that the deal should close by September 15, 2020.  If Microsoft is successful, the American government may decide against banning the Chinese owned app TikTok and in return, the video app may add value to Microsoft. 

TikTok Valuation

According to Forbes, TikTok is valued at $50 Billion, but Microsoft is only focused on buying TikTok America and they may pay about $5 billion for that; says people familiar with the matter. 

• ByteDance doubled its revenues from $7.4 billion in 2018 to $17 billion in 2019, according to Bloomberg. 
• The Beijing-headquartered firm released TikTok in 2016 and the app has already been downloaded over 2 billion times. 
• ByteDance’s private valuation is reportedly around $110 billion, but one analyst said it could fetch a valuation of up to $180 billion in an initial public offering. 

Click below to read Microsoft’s statement.

Microsoft to continue discussions on potential TikTok purchase in the United States