Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Microsoft Corporation    MSFT

MICROSOFT CORPORATION

(MSFT)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Microsoft : With Executive Order Looming, Microsoft In Talks To Purchase TikTok

share with twitter share with LinkedIn share with facebook
08/06/2020 | 02:11am EDT

President Trump's threatened Executive Order "banning" TikTok, a social media application, prompted Microsoft Corp. ("Microsoft") to announce that it would "continue discussions to explore a purchase of TikTok in the United States." Microsoft promised that, as part of any acquisition, it would take steps to protect the private data of TikTok's American users by ensuring that all such data is transferred to and remains in the United States.

On July 31, 2020, President Trump informed reporters that he intended to sign an Executive Order aimed at "banning" the availability of the popular video-sharing social networking app. TikTok, a subsidiary of Chinese internet technology company ByteDance Ltd. ("ByteDance"), became available for download in the United States in August 2018, when it merged with Chinese Internet start-up Musical.ly, which ByteDance had previously acquired in late 2017. The President stated that he would "ban" TikTok by September 15, 2020 unless ByteDance found an American buyer.

The President's statements followed comments made by Secretary of State Mike Pompeo, who indicated in early July that the United States government was looking at ways to ban or limit TikTok's operations in the United States in light of concerns that TikTok was sharing the private data of American users with the Chinese government. For similar reasons, ByteDance's acquisition of Musical.ly has been under investigation since late 2019 by the Committee on Foreign Investment in the United States ("CFIUS"). ByteDance consistently has denied the allegation that it shares data with the Chinese government.

CFIUS reportedly gave the parties 45 days (i.e., until September 15, 2020) to finalize a deal.

Commentary

ByteDance and Musical.ly did not voluntarily file with CFIUS at the time of their transaction in 2017. While both companies were Chinese-owned, CFIUS's jurisdiction extends to any acquisition by a foreign person (here, ByteDance) of a U.S. business, the definition of which in CFIUS's regulations likely is broad enough to encompass Musical.ly's U.S. operations. At the time of the acquisition, U.S. government concerns regarding the national security implications of the collection of sensitive personal data of Americans by foreign - and especially Chinese - companies had not fully crystalized. But with the passage of FIRRMA in 2018, Congress made clear that this would be a top issue for CFIUS. As such, the revelation that CFIUS was reviewing the acquisition did not come as a surprise. It is not clear whether CFIUS has been unable to negotiate sufficiently strong mitigation measures to address concerns regarding data sharing short of divestment of the U.S. business involved or if senior policy-makers wanted Chinese ownership gone altogether.

The possible divestment of TikTok's U.S. operations is another reminder to parties to transactions that may be within CFIUS's purview that they must pay close attention to foreign policy trends and developments, as ultimately national security determinations by CFIUS - and the President - cannot be fully divorced from foreign policy considerations. In fact, transactions could become subject to CFIUS scrutiny years after completion if policy and alliances change.

Primary Sources

  1. Microsoft Blog Post: Microsoft to Continue Discussions on Potential TikTok Purchase in the United States

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mr Keith Gerver
Cadwalader, Wickersham & Taft LLP
1201 F Street, N.W.
Washington
DC 20004
UNITED STATES
Tel: 2125046000
Fax: 2125046666
E-mail: cwtinfo@cwt.com
URL: www.cadwalader.com

© Mondaq Ltd, 2020 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source Business Briefing


share with twitter share with LinkedIn share with facebook
All news about MICROSOFT CORPORATION
01:31aWALL STREET WEEK AHEAD : More U.S. companies offer earnings guidance despite pan..
RE
10/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
10/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
10/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
10/23HONEYWELL INTERNATIONAL : Teams Up With Microsoft To Reshape The Industrial Work..
AQ
10/23MICROSOFT : National Guard called in to thwart cyberattack in Louisiana weeks be..
RE
10/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
10/23MICROSOFT : establishes new digital alliance with the state of Texas to expand e..
AQ
10/23HONEYWELL INTERNATIONAL : Teams Up With Microsoft To Reshape The Industrial Work..
AQ
10/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
More news
Financials (USD)
Sales 2021 157 B - -
Net income 2021 49 091 M - -
Net cash 2021 82 379 M - -
P/E ratio 2021 33,6x
Yield 2021 1,01%
Capitalization 1 635 B 1 635 B -
EV / Sales 2021 9,90x
EV / Sales 2022 8,84x
Nbr of Employees 163 000
Free-Float 99,9%
Chart MICROSOFT CORPORATION
Duration : Period :
Microsoft Corporation Technical Analysis Chart | MSFT | US5949181045 | MarketScreener
Technical analysis trends MICROSOFT CORPORATION
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 36
Average target price 236,17 $
Last Close Price 216,23 $
Spread / Highest target 28,6%
Spread / Average Target 9,22%
Spread / Lowest Target -16,8%
EPS Revisions
Managers
NameTitle
Satya Nadella Chief Executive Officer & Non-Independent Director
Bradford L. Smith President & Chief Legal Officer
John Wendell Thompson Independent Chairman
Kirk Koenigsbauer COO & VP-Experiences & Devices Group
Amy E. Hood Chief Financial Officer & Executive Vice President
Sector and Competitors
1st jan.Capitalization (M$)
MICROSOFT CORPORATION37.11%1 635 310
ZOOM VIDEO COMMUNICATIONS, INC.651.79%148 052
SEA LIMITED305.17%78 833
ATLASSIAN CORPORATION PLC73.25%50 608
DASSAULT SYSTÈMES SE1.09%47 031
SPLUNK INC.46.53%35 200