Recent reports suggest that Alphabet Inc., Google’s parent company decided on making an investment in TikTok. According to Bloomberg News, this investment might have been a bid led by a group of unknown companies.
Bloomberg also stated that CapitalG, a privately owned equity arm could be a possible investor in the social media giant. For now, Alphabet’s interest has reportedly declined in recent days, although there is a possibility of the company participating in future bids related to TikTok.
TikTok has over the years emerged as one of the most influential and popular video sharing services on the market. The social media giant has over 100 million users in the U.S. alone, but with great strength comes great tribulation! The government of the U.S. recently accused ByteDance the owners of TIkTok of having ties with the Chinese government, posing as a national security risk to the U.S.
Due to this issue, the president of the United States, Donald Trump is in talks to cut off access to TikTok in the U.S. The only means of the company saving itself from these sanctions is to get a buyer certified by the US before the 12th of November 2020.
Microsoft had previously emerged as the company’s successor, while Oracle and Twitter on the other hand displayed minimal interest in making a bid. Our source reports that an outright acquisition of the company is a possibility, to avoid the regulatory headaches which could arise. Rumors also suggest that YouTube is already designing its own TikTok resembling service called YouTube Shorts
Heres the app’s download link.
Reports from Bloomberg put TikTok at an evaluation of $20 to $50 billion, should Alphabet decide on making a purchase. Let’s hope the acquisition happens, so we can expect a better version of TikTok.