Published 13:00 IST, August 13th 2020
Facebook, Snap mull Dubsmash acquisition as Microsoft plans to buy TikTok
After the recent reports of Microsoft Corp planning to acquire TikTok, Facebook and Snapchat are said to be in talks to acquire TikTok's rival Dubsmash.
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After the recent news reports of Microsoft planning to acquire the micro-video making app TikTok, Facebook and Snapchat are said to be in talks to acquire TikTok's rival Dubsmash, according to international media reports on Wednesday. The news hold significance as it comes after the decision to ban TikTok citing security threats due to alleged data leaks by the company to the Chinese Communist government.
Dubsmash was reportedly approached by both Facebook and Snap Inc, the owner of Snapchat, about a deal in recent weeks adding that the talks included discussions of the deal valued in hundreds of millions of dollars.
However, a Snap spokesperson has refuted the news stating that Snap admires the Dubsmash team but isn't in active talks for acquisition, according to reports, whereas Facebook has said it would not comment on any market speculation.
Microsoft plans to buy TikTok
Amid the stir over TikTok which is facing the wrath over the allegations of leaking confidential user data, Microsoft Corp confirmed earlier in August the intent to purchase TikTok service in the US, Canada, Australia, and New Zealand, which will lead to tech giant owning and operating TikTok in these markets. The confirmation comes after Microsoft CEO Satya Nadella held talks with US President Donald Trump as the latter raised concern over the security arising out of the use of China-based social media app.
Microsoft said in a statement that the company “fully appreciates” the importance of addressing the concerns, adding that it is committed to acquiring TikTok “subject to a complete security review”. It also emphasised on providing “proper economic benefits” to the US, including the Department of Treasury.
According to some reports, microblogging site Twitter had also expressed its interest in acquiring the US operations of TikTok, however, it was also reported that the deal is less than likely to come to fruition since Twitter would not be able to raise the capital to pull through the deal.
Donald Trump on August 6 signed an executive order banning American citizens and businesses from doing any transaction with Chinese-owned application TikTok, its parent company ByteDance Ltd. and messaging app WeChat after 45 days. Trump has accused the Chinese-owned apps of storing personal data of American citizens and possibly sharing it with the Chinese Communist Party. Trump in his executive order stated that these steps have been taken because the application threatens the national security, foreign policy, and economy of the United States.
TikTok has said it was 'shocked' by the executive order issued by the US President Donald Trump and has threatened to take legal action and pursue the matter in court. TikTok has accused the US government of interfering in talks between two private businesses and also said that it tried to engage with the administration in good faith but all in vain.
13:00 IST, August 13th 2020