On Friday, Apple released a report entitled “US President Trump may announce that TikTok must be sold to a US company, and the odds are that it may be …” The report noted: “I think Wall Street would love to see Apple acquire TikTok to shake up the top dogs of social media. But with Apple under the microscope of both the EU and US antitrust committees to be monopolistic, the odds are extremely slim. Apple will help bid on the company. The timing of such an agreement is incorrect.
This morning, the Apple blogosphere ran to jump on the rumor started by Axios, one we ignored because of the position we posted on Friday.
Then came the Reuters report where he said “Apple Inc has no interest in buying TikTok, the company said on Tuesday and denied a report from the news website Axios from earlier in the day.
Since then, we have learned that the founder of ByteDance Zhang Yiming had to respond to an angry setback against the company in China in order to entertain the sale of TiKTok to Microsoft.
The founder understood the anger Chinese fans had because they have high expectations of their young Chinese company, and they are looking for a reason to speak out in the United States. Angry fans are calling for a boycott of the popular TikTok app in China because the CEO went to the US too quickly
As we reported on Saturday, “ByteDance did not seek approval for the acquisition from the US Committee on Foreign Investment (CFIUS), which is reviewing agreements for potential national security risk. Reuters reported last year that CFIUS had opened an investigation into TikTok.”
I had commented in the report that this was not “something a foreign company accidentally forgets, which prompted the US president to act. Zhang acknowledged this as the heart of the problem.”
Zhang tried to explain to his fans that “some people had misunderstood the US situation,” he said Washington’s goal was not to force the sale of TikTok’s US operations through the US Foreign Investment Committee (CFIUS) but to ban the app, and it was a legal process ByteDance had no choice but to follow.“
In order not to have TikTok banned in the US Zhang told his employees in another internal letter on Monday that the company had started talks with a technical company so that it can continue to offer the TikTok app in the United States. For more on this, read the full report from Reuters.
Yesterday we released a report entitled “Microsoft confirms that an agreement for TikTok will be completed by September 15.”