FT: ‘Microsoft also wants to acquire European activities from TikTok’

Five anonymous sources tell the Financial Times that Microsoft wants to acquire TikTok’s global operations. Microsoft has always said that it only wants to take over some of the activities. Sources contradict the rumor to Reuters and Business Insider.

According to the Financial Times, the talks between Microsoft and TikTok are still at an early stage and it is therefore still unclear how much Microsoft will take over from TikTok. The five sources say the company now wants to acquire all of TikTok’s activities, including the European and Indian part. Microsoft previously said it only wanted to take over the American, Canadian, Australian and New Zealand part.

With such a partial takeover, the remaining TikTok parts would remain in the hands of the Chinese ByteDance. According to one FT source, this situation would be undesirable, because certain departments such as HR would be difficult to separate into a Microsoft and ByteDance part. In addition, Microsoft would like to ensure with the entire acquisition that TikTok works when users travel from, for example, the US to Europe.

One anonymous source tells both Business Insider and Reuters that the FT story is wrong. It is unclear whether the two media have spoken to the same source. Microsoft would not have suggested buying the entire TikTok from ByteDance. Microsoft and ByteDance have not responded to the FT article.

A complete takeover of TikTok would cost more than $ 50 billion, Reuters writes. Microsoft and ByteDance have been given until September 15 to close a deal by US President Trump. Otherwise, the service will be banned in the United States. Trump said at the time that taking over all of TikTok would be more sensible in his opinion. The president wants Microsoft to pay the United States for making the acquisition possible.