TikTok lost a potential buyer
At the beginning of the month, President Trump announced that he is banning the Chinese app, #TikTok, over concerns of national security. After it, a couple of companies started talking to ByteDance's representatives about a possible acquisition.
Microsoft got President Trump’s approval to negotiate the purchase of the app. Besides Microsoft, Twitter and Oracle might be competitors to Microsoft. According to people familiar with the subject, Microsoft is the front runner of this race.
However, over the weekend, Alphabet expressed its interest in buying a minority stake in TikTok. But its interest fizzled away just as unexpectedly as it showed up. According to Bloomberg, #Google's parent "considered participating in a group bid for TikTok." Allegedly, the deal was to be closed through CapitalG – a private equity company specialized in late-stage investments. The bid wasn't concluded, and no one knows "why the effort ended."
Despite the interest from other major companies, TikTok will do as it wishes. Over the weekend, it announced that it plans to sue #Trump administration executive order made to ban it from the US. According to TikTok, the company tried to work things out with the US government. Still, it encountered "a lack of due process as the Administration paid no attention to facts and tried to insert itself into negotiations between private businesses." The legal challenge is to come this week.
Sources: seekingalpha.com, edition.cnn.com
This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com