Microsoft co-founder, Bill Gates says Satya Nadella’s plans of buying TikTok is a risky move, calls TikTok “poison chalice”
After President Trump signaled his intent to ban TikTok completely from the United States, Microsoft CEO reached out to President Trump and sought his permission for buying TikTok US, Australia, Canada, New Zealand. President Trump agreed to the proposal but set a 45 day period for Microsoft to complete the deal. As per the deal, either Microsoft will purchase TikTok short video uploading App by September 15th or it will be banned in the United States,
However, Microsoft’s co-founder, Bill Gates is not happy with the current CEO’s decision to buy the Chinese App. Gates who now acts as an adviser to the Redmond based giant calls this a very risky move. Gates says that managing social media networks is a very hard business with so much competition that taking over TikTok could be akin to drinking from a “poison chalice.”
“Who knows what’s going to happen with that deal. But yes, it’s a poison chalice. Being big in the social media business is no simple game, like the encryption issue,” Bill Gates said in an interview with Wired. “I think that the game being more competitive is probably a good thing. But having Trump kill off the only competitor, it’s pretty bizarre.”
Twitter interested in acquiring TikTok
While Microsoft and TikTok are expected to reach an agreement by September 15, negotiations are still underway between the Redmond-based software giant and ByteDance, the Chinese owner of the service. The United States government is also involved in the talks, with President Donald Trump emphasizing that unless a takeover deal is decided, TikTok would just be banned in the United States.
Twitter has approached TikTok’s Chinese owner ByteDance to express interest in acquiring the U.S. operations of the video-sharing app, two people familiar with the matter told Reuters. However, Twitter is short of the money required to acquire TikTok vis-à-vis Microsoft. Twitter’s market capitalization of close to $30 billion almost as much as the valuation of TikTok’s assets to be divested, The reports suggest that Twitter is also seeking big investors who can help it outbid Microsoft.
Earlier there were reports of Twitter and TikTok being in preliminary talks and Microsoft still being seen as the front-runner in bidding for the app’s U.S. operations. One of Twitter’s shareholders, private equity firm Silver Lake, is interested in helping fund a potential deal.
China’s reaction to breaking up of ByteDance and TikTok
China will not take likely to the US administration breaking up ByteDance and TikTok. It has warned that it just won’t sit and watch one of its most popular services being taken over by the United States. We have already reported how Apple could be a possible target for Chinese retaliation. This was seen from the way an old patent infringement lawsuit against Apple from 2012 suddenly sprung again.