After TikTok was banned in India, it could also be banned in the US. US president Donald trump on Friday said that they could potentially sign an executive order to ban Tik Tok in the country. Security concerns and potential threat to users data is speculated to be the main reason for this move, both in India and US.
TikTok has close to 80 million monthly active users in the US and if it is banned in the country, it would be a major setback for the Beijing headquartered ByteDance, the parent company of TikTok.
After the announcement many potential M and A (mergers and acquisitions) deals are on the cards. Microsoft was considered to be a top contender to buy TikTok’s US operations but the deal didn’t went through as even after the sale, ByteDance wants to holds a minority stake in the company.
ByteDance is valued at $140 Billion and TikTok is valued at $50 Billion. Bytedance is currently negotiating with companies like Sequoia Capital and and General Atlantic to sell majority of the ownership.
United States is being extra cautious about their data security and after India being the front runner in banning Chinese Apps by banning more then 100 Apps in last 1 month, more such news can also be expected from US.