President Donald Trump is ready to approve Microsoft Corporation's (NASDAQ: MSFT) purchase of ByteDance's short-form video app TikTok -- but only if the United States government received "a lot of money," the Wall Street Journal reported Monday.What Happened Trump reportedly told the Redmond, Washington-based company's CEO Satya Nadella that, "a very substantial portion of that price is going to have to come into the Treasury of the United States because we're making it possible for this deal to happen."Legal analysts and others told the Journal that such a demand is extraordinary. "It is completely unorthodox for a President to propose that the U.S. take a cut of a business deal, especially a deal that he has orchestrated," University of Richmond professor Carl Tobias said, adding that such an idea is also possibly "illegal" and "unethical."Former Treasury official in the George W. Bush administration, Tony Fratto, noted that irrespective of the president's wishes, Microsoft and TikTok are unlikely to send a check to the U.S. government beyond their regular tax obligations.Why It Matters Microsoft is in talks with ByteDance to acquire TikTok and may secure a deal in the range of $40 billion, according to Wedbush analyst Daniel Ives.Ives said the Redmond company is the only potential "white knight" for the Chinese owned app, which has the approval to buy it. He estimates the value of TikTok could rise up to $200 billion over time.The software-giant set a September 15 as a deadline for concluding talks with TikTok's owners and is also looking to acquire the app's operations in Canada, Australia, and New Zealand.Price Action Microsoft shares closed nearly 5.6% higher at $216.54 on Monday and declined by 0.16% in the after-hours session.Photo courtesy: Gage Skidmore on FlickrSee more from Benzinga * UK Approves TikTok Parent ByteDance's Relocation To London Amid Microsoft Buyout Talks: Report * Twitter Says 'Spear Phishing' Attack On Employees Led To Massive Breach Involving Elon Musk, Bill Gates(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Read More...
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="President Donald Trump is ready to approve
Microsoft Corporation’s (NASDAQ:
MSFT) purchase of ByteDance’s short-form video app TikTok — but only if the United States government received “a lot of money,” the Wall Street Journal
reported Monday.” data-reactid=”19″>President Donald Trump is ready to approve
Microsoft Corporation’s (NASDAQ:
MSFT) purchase of ByteDance’s short-form video app TikTok — but only if the United States government received “a lot of money,” the Wall Street Journal
reported Monday.
What Happened
Trump reportedly told the Redmond, Washington-based company’s CEO Satya Nadella that, “a very substantial portion of that price is going to have to come into the Treasury of the United States because we’re making it possible for this deal to happen.”
Legal analysts and others told the Journal that such a demand is extraordinary.
“It is completely unorthodox for a President to propose that the U.S. take a cut of a business deal, especially a deal that he has orchestrated,” University of Richmond professor Carl Tobias said, adding that such an idea is also possibly “illegal” and “unethical.”
Former Treasury official in the George W. Bush administration, Tony Fratto, noted that irrespective of the president’s wishes, Microsoft and TikTok are unlikely to send a check to the U.S. government beyond their regular tax obligations.
Why It Matters
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Microsoft is in talks with ByteDance to acquire TikTok and may secure a deal in the range of $40 billion, according to Wedbush analyst Daniel Ives.” data-reactid=”30″>Microsoft is in talks with ByteDance to acquire TikTok and may secure a deal in the range of $40 billion, according to Wedbush analyst Daniel Ives.
Ives said the Redmond company is the only potential “white knight” for the Chinese owned app, which has the approval to buy it. He estimates the value of TikTok could rise up to $200 billion over time.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The software-giant set a September 15 as a deadline for concluding talks with TikTok’s owners and is also looking to acquire the app’s operations in Canada, Australia, and New Zealand.” data-reactid=”32″>The software-giant set a September 15 as a deadline for concluding talks with TikTok’s owners and is also looking to acquire the app’s operations in Canada, Australia, and New Zealand.
Price Action
Microsoft shares closed nearly 5.6% higher at $216.54 on Monday and declined by 0.16% in the after-hours session.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Photo courtesy: Gage Skidmore on Flickr” data-reactid=”35″>Photo courtesy: Gage Skidmore on Flickr
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”36″>See more from Benzinga
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”40″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
