Microsoft and ByteDance Investors Circle TikTok Ban Looms

  • Trump admin. plans to ban TikTok and other Chinese software
  • Microsoft and investors are looking to acquire TikTok UNITED states
  • 80 million active monthly users in the UNITED states- the most popular UNITED states to download the application in the 1st quarter

After having been banned in India last month, China short video of the e-mail application TikTok is now facing a ban in the UNITED states due to national security concerns. Microsoft is in advanced talks to buy the Gen Z’s favorite activities in the U.S., which has up to 80 million monthly users, after Trump said Friday that he will sign a decree. Launched in 2016 and introduced to the U.S. market in 2018, TikTok insists on the fact that all the data collected in the UNITED states rest of the country. Chief executive officer Kevin Mayer, Disney old streaming-in-chief, has promised more transparency and make public the code that runs the algorithms on the platform, as he fights for his survival. A “range” of Chinese software may soon be targeted, according to the AMERICAN Secretary of State, Michael Pompeo.

Source: SensorTower.

TikTok is owned by ByteDance, the most precious unicorn in the world with a valuation of $ 140 billion, according to CB Insights. Its investors include Sequoia Capital China, SIG Asia Investments, Sina Weibo, and the SoftBank Group. The company has spent $800,000 lobbying the government of the UNITED states in the first half of 2020, up from$ 270,000 in the whole of last year, as relations between the UNITED states and China has deteriorated.

The application and its cheesy dance routines, has exploded in popularity this year, during the quarantine. The crossing $ 2 billion installs globally in April and has been downloaded over 300 million times in the first and second quarter, according to SensorTower, the creation of a group of minor celebrities. The only other applications to exceed 300 million installs in about a quarter are Zoom (Q2 2020) and Pokémon GO (Q3 2016). In the UNITED states, it has been in the top two apps by downloads in both T1-and T2-2020.

Q2 2020 Apps by the UNITED states Downloads

Source: SensorTower.

The president Trump opposes Microsoft to buy TikTok in the UNITED states, a market supported by the Chinese application, according to The Wall Street Journal. The U.S. technology giant “is ready to continue discussions” and has promised to close the deal by Sept. 15, and ensure that all the private data of American users is transferred and remains in the UNITED states Its proposal also includes the purchase of the app services in Canada, Australia and New Zealand. TikTok has agreed to create 10 000 jobs in the U. S, with ByteDance divest itself completely (not minority) in the context of the transaction. ByteDance has also received a proposal from some of its investors to transfer the majority stake of TikTok in a case that the values at close to $ 50 billion, according to Reuters.

If the deals go through, and TikTok is banned in the UNITED states, the public’s reaction will be fierce, and the potential of the enterprise beneficiaries are fairly obvious. Popular stories, shared tears, goodbyes and diverted the followers of Facebook’s Instagram and Google’s YouTube for more content. Facebook is also launching its 15-second video app Rolls in the UNITED states this month. There are other small players who are winning, too. According to Sensor Tower, in the two weeks following the White House comments at the beginning of July, a Us application called ” Octet-created by Vine co-founder Dom Hofmann, hit 1.3 million downloads, a figure that is 163 times greater than the 8,000 he has seen in two weeks in advance. Based in New York, Dubsmash has seen a resurgence of approximately 282%, climbing from 118 000 downloads 451,000.

 

Source: investopedia.com

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