Microsoft has expressed interest in buying TikTok’s UK operations, while it is in discussion to buy it in other parts of the world. The tech giant is looking to expand beyond the US, Canada, Australia, and New Zealand units where the discussion is already underway.
Currently, it is unclear if TikTok’s Chinese parent Bytedance, wants to sell the UK operations, and if a formal offer will be made. In early August, the UK government said that it has no plans to ban TikTok in the country. Meanwhile, TikTok is planning to move its headquarters from the US to London, while it waits for a public statement of support from the British government.
President Trump sets a 90-day deadline for TikTok’s Chinese owner, Bytedance
On Friday, President Donald Trump formally ordered Bytedance, the Chinese owner of TikTok to divest its US assets. He has set a 90-day deadline for a deal to be announced by September 15 or face a ban.
The executive order signed by President Trump stated that there is evidence to believe that Bytedance may take action that threatens the national security of the United States.
Deal with TikTok to be a compelling strategic fit for Microsoft, says Morgan Stanley analyst Keith Weiss
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Morgan Stanley analyst Keith Weiss commented that this deal would give the tech giant a dynamic and fast-growing springboard to expand its social media presence. He also said that TikTok is likely well under-monetized, and there are multiple channels of potential revenue synergies, such as gaming, commerce, and education. Weiss has a Buy rating on MSFT with a $230 price target.
In general, the Wall Street analysts share Weiss’ outlook on the stock. With shares up by 32% this year, an average price target of $225.54 still shows 9.4% upside potential for the coming year.