TIKTOK with its viral dance routines and political activism videos is a favorite among teenagers worldwide but with quite 2 billion downloads and 17 billion dollars in revenue last year. The app is extremely successful and influential but its exploding popularity has also raised red flags in u.s officials are investigating whether tick-tock may be a threat to national security there are concerns that the info collected by the app owned by the Chinese firm bite dance could be accessed by Beijing.
The Company denies any reference to the Chinese government but Donald Trump is threatening to ban the app within us.
(PRESIDENT UNITED STATES OF AMERICA)
We’re watching tick-tock we could also be banning tick-tock we could also be doing some other things or a few options but tons of things are happening so we’ll see what happens but we are watching tons of alternatives with reference to tick-tock.
One of those alternatives is for bite dance to offer up its ownership of the app potential buyers are reportedly already in talks to require over including tech giant Microsoft a national censoring of tick-tock is expected to be presented to Trump in the coming days. its results may further sour already deteriorating ties between u.s and china with tensions already running high on trade and therefore the coronavirus pandemic cybersecurity concerns are now further straining relations between the 2 powers.
What power does trump even have to put pressure on a Chinese company like that?
U.S President Donald Trump probably couldn’t directly order um tick-tock or um the mother company to sell u.s assets or operations for example but as we heard he could say okay we’re going to ban um tick-tock then they might decide to sell for example us operations to Microsoft then maybe u.s president Donald trump would or take this order uh back so um yeah that’s probably um how the whole deal could work.
What’s behind the American government’s mistrust of this app tick-tock?
They need charges for quite some time that tick-tock is really collecting um privacy data from its users so we have those some accusations those charges by the way not just within us but um also um within the UK or in um Germany a tick-tock himself always was saying that well for instance with u.s operations all the servers are also us-based but still there have been some suspicions that albeit the servers are within u.s that doesn’t necessarily mean that data has not been transferred to Beijing.
looking at the business aspect of things here we’ve heard reports that Microsoft might be trying to shop for our shares of tick-tock would this be an honest deal for Microsoft.
Tick tock is incredibly successful within a very short time span they only recently surpassed two billion uh downloads of the tick top edge worldwide as far as we all know there are estimates that tick-tock the entire operation could be worth about 50 billion dollars. so only u.s operations would choose less which is money that Microsoft could clearly afford but on the opposite side then Microsoft also could be right in between those two struggling superpowers us and china so we’ll wait and see if Microsoft is basically following that path.