14 DAY TRIAL // Microsoft is currently involved in talks to purchase viral app TikTok, and while the company has remained completely tight-lipped on the current state of the negotiations, people familiar with the matter said the two sides are already discussing a possible price for the move.
CNBC’s David Faber revealed that Microsoft could end up paying as much as $30 billion for ByteDance’s service, which would make TikTok the most expensive purchase for the Redmond-based software giant.
At this point, LinkedIn is the most expensive acquisition for Microsoft, as the company paid no less than $26.2 billion for the business social service.
Microsoft will have one year to move all user data to the United States if the deal goes through. Microsoft has already confirmed that data would be stored in the U.S. in order to address any privacy concerns.
“Microsoft would ensure that all private data of TikTok’s American users is transferred to and remains in the United States. To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred,” Microsoft said.
U.S. Treasury wants a cut
The software firm, which has set a September 15 deadline for reaching an agreement, is currently discussing the TikTok takeover not only with China-based ByteDance, but also with Treasury Secretary Steve Mnuchin, who Faber describes as being “deeply involved” in the negotiations.
Oddly enough, President Trump has repeatedly said that the U.S. Treasury would get a cut of the deal if Microsoft buys TikTok, but as per CNBC, this is something that nobody knows “if it’s even legal.”
In the meantime, former CEO Steve Ballmer believes Microsoft buying TikTok is a move that would allow the software giant to increase its focus in the consumer space. Bill Gates, on the other hand, warns that buying a social network is a very risky move for the company.