There was a fair bit of interesting news over the weekend to interest traders and investors alike. One of the more fascinating developments involved Microsoft (NASDAQ: MSFT) is an apparent plan to acquire TikTok’s U.S. assets. This surprise deal was supposedly in the works covertly for the past while before the arrangement was almost halted altogether by President Trump.
The Wall Street Journal went on to report that on Sunday, Microsoft’s CEO Satya Nadella had a phone conversation with President Trump regarding a potential buyout of TikTok’s U.S. business. The new social media company that’s been gaining a lot of traction recently has come under scrutiny due to its Chinese ownership. In fact, President Trump had gone so on to say that he would ban TikTok from operating in the country entirely. However, he seems to have changed his mind following this conversation with Microsoft’s CEO.
“Microsoft appreciates the U.S. Government’s and President Trump’s personal involvement as it continues to develop strong security protections for the country,” said the company in an official statement on Sunday. In quick response, several U.S. politicians responded to the agreement. Some have said that it’s a good decision as it allows the U.S. to control its own data without having to resort to outright bans of popular social media platforms. “Have an American company like Microsoft take over TikTok…Win-win. Keeps competition alive and data out of the hands of the Chinese Communist Party,” tweeted Senator Lindsey Graham.
Microsoft confirmed that the data of all American TikTok users would be transferred to the U.S. where it would be stored there indefinitely. The idea of buyout TikTok’s American assets isn’t that surprising. The Chinese parent company that owns TikTok has flirted with the idea of selling its U.S. business, although it wasn’t entirely sure as to who it would be selling it to.
Many people expected it to be Microsoft, but it could just as well have been another big tech social media giant. It’s a big deal for Microsoft, because TikTok is quickly becoming one of the hottest social media platforms among younger demographics. This acquisition could really catapult the tech giant into the social media world, an area that Microsoft historically hasn’t been the biggest player in.
Shares of Microsoft were up half a percent during Friday’s market session. Moving into Monday, it wouldn’t be surprising if shares shoot up even higher as investors respond to this good piece of news. So far this year, Microsoft has been one of the best-performing stocks on the market, a similar trend seen with most big tech companies. Shares are up around 25% so far this year, pushing Microsoft’s market cap close to around $1.6 trillion.
Microsoft Company Profile
Medifirst Solutions Inc is a development-stage company. It is engaged in building products and affiliations related to the cosmetic healthcare industry. It produces handheld mobile laser devices for anti-aging and skin care diseases. The firm’s main product is Time machine laser therapeutic device. Geographically the activities of the company are primarily operated through the region of United States. – Warrior Trading News
